Technical analysis: 11 June 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
11 June 2021, 10:30 AM

IRESS (IRE) – Target reached

In our last update on the 15th of April 2021 we discussed the likelihood that the price has bottomed and the bullish implications from the breakout in the short and medium-term.

A strong rally has unfolded over the past two months and our price target of $11.50 has been reached and exceeded yesterday.

Thursday’s price action broke above its key resistance of $12.01 suggesting that higher prices are likely to unfold over the long-term. The potential long-term upside price target is $14.00. The weekly and daily momentum indicators moved into their respective bull market ranges supporting the positive outlook for the stock. In the short-term, the price may experience a pull back as the momentum indicators are strongly overbought.

 

Unibail-Rodamco-Westfield (URW) – Buy

The decline from the November 2019 high has lost momentum over the past year and the price has been trading sideways fluctuating within the boundaries of a bullish inverse head and shoulders pattern.

Wednesday’s price action broke above its neckline crossing at $5.79 confirming that the prior down trend is complete and that a new primary up trend has started.

The first potential upside price target is $8.00. Over the long-term, levels to $9.50 appear easily achievable. In the short term, the price could experience a mild pull back towards its neckline, which would provide an excellent buying opportunity.

New Hope Corporation (NHC) – Bullish breakout

The down trend from the March 2019 high has lost momentum over the past year and the price has been trading sideways fluctuating between $1.01 and $1.65, which we see as part of a base building process.

The current up swing decisively broke above its key resistance earlier in the week suggesting that the down trend is over and a new primary up trend has started. The potential long-term upside price target based on the breakout is $2.29.

The daily RSI indicator reached strongly overbought territory suggesting that the price is likely to pull back in the short-term to unwind its overbought momentum conditions. We see such potential short-term share price weakness as a buying opportunity. 

AMP Ltd (AMP) – A bottom is in

In our last update on the 28th of May 2021 we discussed the likelihood of strong buying interest to arise around key support of $1.00 and the probability of the price rebounding in the short-term.

The price has rallied as expected and we now see further improvement on the daily chart. The RSI indicator broke above its bear market resistance yesterday suggesting that the secondary down trend from the December 2020 high is likely to reverse course and that a new secondary up trend is likely to unfold in the coming months.

A small bottom reversal pattern is now clearly in place on the daily chart, which points to higher prices in the weeks ahead. The weekly RSI and MACD indicators have turned up from oversold levels also suggesting that higher prices are likely in the months ahead. Our price target of $1.40 remains unchanged. 

Reece (REH) - Overbought

REH has been trading in a strong up trend since March 2020 which remains technically intact. The current price is approaching its 423.60% Fibonacci retracement ratio measured from the February 2020 high to the March 2020 low, which crosses around $25.00 and highlights that area as a potential strong level of resistance.

Bearish divergences have formed between the daily and weekly RSI indicators and the price, which shows that internal momentum is deteriorating and suggests that the rally could take a breather soon.

Although, at this juncture in time there is no reversal signal evident on the chart and the up trend is still in progress, given the proximity to dynamic resistance and the deteriorating daily and weekly momentum conditions, we are of the view that the strong rally is likely to pause soon. 

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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