Technical Analysis: 12 March 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 March 2021, 10:00 AM

oOh!media (OML) – Tracking well

OML has been trading in a slow but steady up trend since March 2020 which is still firmly intact.

The long and medium-term up trend lines are still providing support for the stock showing that the price action is constructive and trending in an upward trajectory.

The daily RSI indicator is in its bull market range showing that momentum is positive.

The weekly RSI indicator broke above its bear market resistance in November 2020 and is the first bullish development over the past two years.

This indicates that the primary down trend from the August 2018 high is likely to be at a turning point and that higher prices are likely to unfold in the months ahead.

A subsequent break above resistance of $1.91 is highly likely in our view, which could trigger a rally to $2.30. We are of the view that the current price levels present a good opportunity to buy the stock.

Flight Centre Travel (FLT) – Lifting our target

In our last update on the 2nd of November 2020 we discussed that strong buy interest is likely to arise around key support of $8.56 and recommended clients buy the stock in the range between $9.00 and $10.00.

A strong rally has unfolded over the past few months and our upside price target of $17.00 has now been reached and exceeded.

The price action over the past year has been contained within the boundaries of a large ascending triangle, which is bullish pattern and points to higher prices over the long-term.

Thursday’s price action broke above key resistance of $19.05 on a closing basis, providing the required confirmation for the pattern.

This is a very bullish development and we have high conviction that higher prices are likely to unfold in the year ahead.

The weekly RSI indicator broke above its bear market resistance earlier in the week, suggesting that the primary down trend from the August 2018 high is likely to be complete.

Such developments on the weekly chart are quite reliable and suggest that a new primary up trend is likely starting.

Given the bullish set up on the daily chart and the improvement in the weekly momentum conditions, we lift our medium-term price target to $23.00 and our long-term target to $28.00.

IDP Education (IEL) – Buy around $20.00

In our last update on the 15th of February 2021 we discussed the overbought nature of the stock and the likelihood pf the price declining in the short-term.

The expected pull back is currently underway and we see the current share price weakness as an opportunity to buy the stock.

The current down swing is approaching its dynamic support crossing at $20.00, where strong buying interest is likely to arise.

The daily RSI indicator is approaching oversold levels suggesting that the price is likely to bounce soon. We see any further share price weakness in the range between $20.00 and $21.00 as an opportunity to buy the stock.

The first potential upside price target is $24.50, however higher prices are achievable over the long-term.

Ampol (ALD) – High conviction buy

ALD has been trading in a wide range over the past year, fluctuating between $22.87 and $31.45. The current secondary down swing has approached its key support of $22.87 where strong buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon.

Given the proximity to key support and the oversold momentum conditions, we see the current price levels presenting a great opportunity to buy the stock.

The first potential upside price target is $26.50 followed by $28.50 over the medium-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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