Technical Analysis: 11 February 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 11 February 2019, 10:19 AM
National Australia Bank (NAB) – short term weakness
NAB has been trading in a down trend since May 2017 which is still technically intact. The current short term upswing has approached a band of resistance between $25.23 and $26.05 where initial selling pressure is likely to arise.
The stochastic indicator is approaching overbought territory pointing to a likely pull back in the short term. The RSI indicator is in neutral territory suggesting that the stock could trade sideways in the months ahead.
Santos (STO) – short term weakness
STO has been trading in a strong upward trajectory since late December 2018, which appears to be reversing direction. The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.
Over the medium term, the price is likely to continue to trade sideways with the price fluctuating between $5.50 and $6.50.
Aust Securities Exchange (ASX) – approaching resistance
ASX has been trading in a strong upward mode over the past seven weeks which is still technically intact. The current price action is approaching its all-time high of $68.91 where initial selling pressure is likely to arise.
The RSI and the MACD indicators have reached overbought territory suggesting that the short term upside from here is likely to be limited.
Pendal Group (PDL) – short term weakness
The down trend from the May 2017 high has lost momentum over the past four months and the price has been trading sideways, fluctuating between $7.37 and $8.86. The RSI indicator has rebounded to its resistance showing that the stock is overbought. The current short term up swing has rebounded to its minor resistance of $8.30 where initial selling pressure may arise.
Given the proximity to resistance and overbought momentum levels, we are of the view that the short term upside from here is likely to be limited.
GrainCorp (GNC) – close to resistance
After gapping up strongly in December 2018 the price lost momentum and has been trading sideways, fluctuating between $8.75 and $9.80. The current up swing has approached its resistance of $9.80 where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.
Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead.
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