Technical analysis: 28 May 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Former 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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