Technical analysis: 21 June 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
21 June 2021, 9:00 AM

Alliance Aviation Services (AQZ) – Double Blessed Buy

AQZ has been trading in a consistent up trend since March 2020 which is still technically intact.

The up trend has lost momentum over the past two months and the price has been trading sideways, fluctuating between $4.05 and $4.92. The current short-term down swing has retraced close to its previous band of support between $3.85 and $4.05 where buying interest is likely to arise.

The daily RSI indicator has reached oversold territory suggesting that the price is likely to bounce in the short-term. The potential upside price target is $4.80. Given the proximity to a band of support and to oversold momentum levels, we are comfortable to accumulate the stock around current price levels.

The Star Entertainment Group (SGR) – Accumulate

The XJO has been trading in a consistent up trend since March 2020, recently breaking above its February 2020 high of 7197 and reaching an all-time high of 7,406 on the 16th of June 2021.

The weekly and daily RSI indicator have reached overbought territory suggesting that the index is vulnerable to a pull back in the short-term. We see a decline to 7,150 as a fair possibility in the weeks ahead.

Despite the weekly and daily overbought momentum conditions which always warrants caution, over the long-term, we don’t see a reversal of the up trend at this point. From current price levels only a break below support of 6,905 would show deterioration in the trend which could trigger further weakness in the month(s) ahead. Overall, the momentum indicators remain in its bull market range and we are of the view that index could extend its march higher to 7,560 over the medium-term.

Bega Cheese (BGA) – Tracking well

SGR has been trading in an up trend since March 2020 which is still technically intact. The up trend has lost momentum over the past four months and the price has been trading sideways, fluctuating between $3.58 and $4.30.

The current short-term down swing has retraced to its previous support where initial buying interest is likely to arise. The daily RSI indicator has reached oversold territory suggesting that the price is likely to bounce in the short-term.

Given the proximity to its previous support and to oversold momentum levels, we see the current share price weakness as an opportunity to accumulate the stock. The potential upside price target is $4.10.

Betmakers Tech Group (BET) - Buy

BGA has been trading in a consistent up trend since March 2020 which remains firmly intact. The recent down swing has retraced to its long-term up trend line crossing at $5.60 where buying interest was strong.

Last week’s price action broke above minor resistance of $5.98 suggesting that the prior pull back is likely to be over and that higher prices are likely to unfold in the weeks ahead. The potential upside price target is $6.50.

In the very short-term, the price may experience a mild pull back to unwind its overbought stochastic readings. Such potential short-term share price weakness would provide an opportunity to accumulate the stock.

Alkane Resources (ALK) – Target reached

In our last update on the 12th of April 2021 we discussed number of bullish developments emerging on the chart and the likelihood of the price breaking above resistance of $0.78.

A bullish ascending triangle was completed later in the month suggesting that the anticipated up trend has started. A strong rally has unfolded over the past two months and our upside price target of $1.10 has now been reached.

While we continue to like the stock over the long-term and we believe that higher prices are achievable, we note the development of a bearish divergence between the price and the daily RSI indicator, which suggests that the price could pull back in the short-term.

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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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