Technical Analysis: 22 March 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Former Senior Technical Analyst
- Date posted:
- 22 March 2021, 4:00 PM
Northern Star Resources (NST) – High Conviction Buy
NST has been trading sideways over the past two years fluctuating between $8.85 and $17.03.
The current secondary correction has retraced to the bottom of its long-term trading range, where strong buying interest is likely to arise.
The RSI indicator completed a bottom reversal pattern from oversold territory suggesting that the price is likely to bounce soon.
The MACD indicator has crossed from oversold levels also pointing to higher prices in the coming months.
Given the proximity to key support and the oversold momentum readings, we see the current price levels as attractive to buy the stock.
The first potential upside price target is $11.00, followed by $13.00 over the medium-term.
Regis Resources (RRL) – Double Blessed Buy
RRL has been trading sideways over the past two years fluctuating between $2.90 and $6.72.
The current secondary down trend has retraced to its key support where the buyers are likely to step in.
A large bullish divergence between the price and the RSI indicator has formed over the past five months suggesting that the price is likely to be at a turning point.
Given the proximity to key support and the oversold and improving momentum conditions, we are of the view that the current share price weakness presents an opportunity to buy the stock.
The first potential upside price target is $3.50, followed by $3.90 over the medium-term.
Westgold Resources (WGX) – Ready for breakout
WGX has been trading in a slow but steady primary up trend over the past two years which is still technically intact.
The current secondary correction has retraced to its previous multiple support of $1.85 where initial buying interest is likely to arise.
The leading RSI indicator completed an inverse head and shoulders pattern and broke above its medium-term down trend line suggesting that higher prices are likely to unfold in the weeks ahead.
A break above minor resistance of $2.16 is likely and could trigger a fast rally in the short-term.
The first potential upside price target is $2.40 followed by $2.60 over the medium-term.
Given the proximity to support and the improvement in the momentum conditions, we see a high probability of an imminent breakout.
Perpetual (PPT) – Heading higher
PPT has been trading in a slow but steady secondary up trend since March 2020 which is still technically intact.
Last week’s price action broke above minor resistance of $32.36 suggesting that the correction from the January 2021 high is likely to be complete.
The RSI indicator formed a bottom reversal pattern from oversold levels suggesting that higher prices are likely to unfold in the month(s) ahead.
The initial upside price target is $36.50, however over the long-term higher price levels are achievable.
In the short-term, the price may experience a mild pull back as the stochastic indicator is overbought.
We see such potential short-term share price weakness as an opportunity to buy the stock.
GWA Group (GWA) - Accumulate
GWA has been trading sideways over the past two years fluctuating between $2.25 and $4.00.
The current secondary correction has retraced to its medium-term up trend line crossing at $2.65 where initial buying interest is likely to arise.
The RSI and the MACD indicators have reached oversold territory suggesting that the pull back is likely to reverse course soon.
While our ideal buy range is between $2.30 and $2.40, given the proximity to dynamic support and the oversold momentum conditions, we see the current share price weakness as an opportunity to accumulate the stock.
The first potential upside price target is $3.20, followed by $3.50 over the medium-term.
Find out more
Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section.
If you would like access or more information, please contact your adviser or nearest Morgans office.
Request a call Find local branch
Need access to our research?
You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team.
Create trial account
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.