Technical Analysis: 26 March 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
26 March 2021, 4:15 PM

GrainCorp (GNC) – Lifting our target

In our last update on the 11th of February 2021 we discussed the bullish implications of the ascending triangle and the likelihood of the price breaking above key resistance of $4.65.

A strong and sustained breakout occurred earlier in the week and our first upside price target of $5.20 has now been reached. The RSI indicator has shifted into its bull market range, showing significant improvement in the momentum conditions.

Both developments suggest that more dynamic secondary up trend is likely to develop in the months ahead. Therefore, we lift our medium-term upside price target from $5.60 to $5.80.

Over the long-term, levels to $6.10 appear easily achievable. In the short-term, a pull back to unwind the overbought momentum conditions is likely.

We see such potential short-term share price weakness as an opportunity to add to positions.

Brickworks (BKW) – Ramping up momentum

The rally from the April 2020 low has lost momentum over the past five months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle.

Thursday’s price action broke above minor resistance of $19.50 suggesting that higher prices are likely to unfold in the weeks ahead. The weekly stochastic indicator has turned up from oversold levels also pointing to likely higher prices.

The weekly RSI indicator is constructive and building a base at its bull market range support, showing that the momentum conditions are still strong.

Given the constructive price structure and momentum conditions, we see a good probability of the price subsequently breaking above its key resistance of $20.75.

Once this level of resistance is cleared the price is likely to rebound to $21.50.

Corporate Travel Management (CTD) – Tracking well

CTD has been trading in a strong secondary up trend since March 2020, fluctuating within the boundaries of an up trend channel.

The RSI indicator is firmly above its medium-term up trend line showing that momentum remains constructive.

The stochastic indicator is turning up from oversold levels suggesting that the price is likely to bounce in the short-term. The first potential upside price target is $22.00 followed by $24.50 in the months ahead.

We see the current price levels as attractive to accumulate the stock.

Suncorp Group (SUN) – Double Blessed Buy

SUN has been trading in a slow but steady secondary 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 $9.67 and $11.11.

The current down swing has retraced to its previous support where buying interest is likely to arise.

The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short-term.

Given the proximity to 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. Over the medium-term, levels to $12.20 are achievable.

Waypoint REIT (WPR) – Double Blessed Buy

The recovery from the March 2020 low has lost momentum over the past ten months and the price has been trading sideways, fluctuating between $2.25 and $2.87.

The recent down swing has retraced to its previous support, where the buyers decisively stepped in.

The RSI indicator completed a bottom reversal pattern from oversold territory suggesting that higher prices are likely to unfold in the next 2-3 months.

The potential upside price target is $2.80. In the short-term, the price may experience a mild pull back to unwind its overbought stochastic readings.

Such potential short-term share price weakness would present a good buying opportunity.

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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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