Technical analysis: 28 June 2021

About the author:

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

Inghams (ING) – Approaching resistance

ING has been trading sideways over the past two years fluctuating between $2.83 and $4.27.

The current short-term up swing is approaching its previous resistance of $4.27 where initial selling pressure is likely to arise. The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back in the short-term.

A small bearish divergence between the price and the RSI indicator has formed over the past month showing that momentum is deteriorating. Although, at this point there is no clear reversal pattern in place, given the proximity to a previous resistance and the overbought and diverging momentum conditions, we are of the view that the up swing is likely to take a breather soon.

IPH Limited (IPH) – Approaching resistance

The down trend from the February 2020 high has retraced to $5.77 where a small double bottom has formed throughout January-February 2021.

Further improvement was evidenced last week with the price breaking above resistance of $7.63 and suggesting that the stock is now trading in a wide trading range with next key resistance arising around $8.75.

Despite the overbought daily RSI readings, which point to a potential pull back in the short-term, given the improvement in the price structure over the past few months, we are of the view that the price could extend its run higher to $8.40 over the medium-term. We see any further strength from here as an opportunity to lighten positions.

Jumbo Interactive (JIN) – Target reached

In our last update on the 25th of February 2021 we discussed the proximity to support, the likelihood of the price rallying over the medium-term and recommended clients buy the stock.

A slow but consistent rally has unfolded over the past four months and our medium-term upside price target of $17.50 has now been reached. The current price action has rebounded close to its up trend channel line crossing at $19.00 where initial resistance is likely to arise.

The daily RSI indicator has reached overbought territory suggesting that the price is vulnerable to a pull back in the short-term. Although, we note an improvement in the weekly and daily momentum conditions, which suggests that over the long-term, the price could continue its recovery, we see the current share price strength as an opportunity for active traders to lighten positions.

Northern Start (NST) - Accumulate

NST has been trading sideways over the past two years fluctuating between $8.85 and $17.03. The current short-term down swing is approaching its key support where buying interest is likely to arise.

The RSI and the MACD indicators are approaching oversold territory suggesting that the decline is likely to be arrested soon and the price is likely to rebound in the weeks ahead.

Given the proximity to key support and to oversold momentum levels, we see the current share price weakness presenting an opportunity to accumulate the stock. The first potential upside price target is $12.00. Over the medium-term, levels to $13.50 are achievable.

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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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