Technical Analysis: 18 March 2021

About the author:

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

Breville Group (BRG) – Approaching support

BRG has been trading in a strong up trend since March 2020 which is still technically intact. The current short-term pull back has retraced close to its key support of $23.27 where 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.

The weekly momentum indicators are constructive and firmly in its bull market range suggesting that higher price levels are likely to unfold over the long-term.

Given the proximity to key support and the oversold daily momentum conditions, we see the current prices as attractive to accumulate the stock.

The first potential upside price target is $30.00 followed by $33.00 over the medium-term.

Abacus Property Group (ABP) – Building a base

ABP has been trading in a slow but steady secondary up trend since March 2020 which is still technically intact.

The current pull back has retraced to a band of support between $2.49 and $2.57, where buying interest is likely to arise.

The correction has clearly lost momentum over the past month and the price appears to have been in the process of building a small base.

The RSI indicator completed a bottom reversal pattern from oversold levels suggesting that the price is likely to follow suit.

A break above minor resistance of $2.82 is highly likely in our view, which could trigger a rally to $3.00. Over the medium-term, levels to $3.30 appear easily achievable.

Given the improvement in the momentum conditions, we see the current and any further short-term share price weakness as an opportunity to buy the stock.

Cromwell Property Group (CMW) - Accumulate

The recovery from the March 2020 low has lost momentum over the past four months and the price has been trading in a correction mode.

The stock retraced to its previous support of $0.78 and has been in the process of building a small base over the past three weeks.

The RSI indicator completed a bottom reversal pattern from oversold territory suggesting that higher prices are likely to unfold in the months ahead.

Wednesday’s price action breached its minor resistance of $0.84 showing that buying interest started building up.

Given the improvement in the momentum conditions and in the price structure, we are of the view that the correction is likely to be complete.

We see a good probability of higher prices unfolding in the coming months with first upside price target of $0.91 followed by $0.98.

We are of the view that the current price levels present a good opportunity to accumulate the stock.

De Grey Mining (DEG) - Buy

After posting a ten year high of $1.60 in September 2020 the up trend has lost momentum and the price has been trading in a correction mode, retracing to $0.80, where support is likely to be strong.

The RSI indicator completed a bottom reversal pattern suggesting that the correction is likely to be over. The medium-term down trend line has been broken upwards recently also pointing to a higher prices in the months ahead.

Wednesday’s price action decisively broke above minor resistance of $0.98 confirming a small bullish ascending triangle.

The price action and the momentum conditions have improved significantly this week, suggesting that a new secondary up trend has started.

The first potential upside price target is $1.20 followed by $1.40 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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