Technical analysis: 28 May 2021

About the author:

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

Firstwave Cloud Technology (FCT) - Accumulate

FCT has been trading in a primary down trend since September 2016 which is still technically intact. The current secondary down trend is approaching its key support of $0.052 which appears solid and is likely to hold.

While at this point there is no clear sign the down trend is reversing course, the weekly RSI indicator has reached oversold territory suggesting that the near-term downside from here is likely to be limited and that the price is likely to rebound soon.

A break above minor resistance of $0.093 would be the first encouraging sign on the chart and is likely to trigger a rally to $-/115.

Over the medium-term, levels to the 61.80% Fibonacci retracement ratio crossing at $0.155 are achievable.

TPG Telecom Ltd (TPG) – Double Blessed Buy

TPG has been trading in a secondary down trend since listing in July 2020 which is still technically intact.

The current down swing has retraced close to its channel line crossing around $4.50 where strong buying interest is likely to start building up.

A bullish divergence between the price and the daily RSI indicator has formed over the past month, showing that the underlying momentum is improving and suggesting that the price is likely to rally in the weeks ahead.

The short-term down trend line marked in blue in the chart below has been broken upwards on Thursday and points to a likely rally in the short-term.

The first potential upside price target is $6.00. Over the medium-term, an extension of the anticipated rally to its long-term down trend line crossing at $6.50 is highly likely.

Breville Group (BRG) – Improvement in momentum

In our last update on the 9th of April 2021 we discussed the likelihood of the correction from the February 2021 high to be approaching completion and recommended clients buy the stock before an actual breakout above $28.28 occurs.

While our recommendation came a little early, we gather further evidence that the down swing might be approaching a turning point.

A bullish divergence between the price and the RSI indicator has formed over the past month showing that the underlying momentum conditions are improving.

The down trend line from the February 2021 high has been broken upwards recently showing that the correction is losing momentum.

The RSI indicator completed a bottom reversal pattern yesterday suggesting that the price is likely to rally in the weeks ahead.

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

AMP Ltd (AMP) – At key support

AMP has been trading in a primary down trend since February 2015 which is still technically intact. The down trend has clearly lost momentum over the past year and the price has been trading sideways, fluctuating between $1.00 and $1.84.

The current secondary down trend has retraced close to its key support where buying interest is likely to arise. The weekly RSI indicator has risen from oversold levels suggesting that the price is likely to rally in the coming months.

A small bottom reversal pattern was completed on the daily chart on Thursday adding further confidence that the price is likely to rebound from here.

The first potential upside price target is $1.30, followed by $1.40 over the medium-term.

Overall, at this point we don’t see a reversal of the primary down trend; however we are of the view that a large bottom could be in the making.

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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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