Technical Analysis: 7 January 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
07 January 2019, 8:22 AM

JB Hi-Fi (JBH) – bearish breakout

JBH has been trading sideways over the past two years, fluctuating between $21.20 and $29.47. Last week's price action decisively broke below its key support suggesting that lower prices are likely to unfold in the coming months.

The potential long term downside price target is $18.00. In the short term, the stock is oversold and is likely to rebound to $22.00 soon.

ResMed Inc (RMD) – taking a breather

RMD has been trading in a strong up trend over the past year which is still technically intact. The price encountered resistance around $16.00 for a third time,  suggesting that the stock is likely to take a breather in the months ahead.

A break below minor support of $15.00 is possible and will trigger short term weakness to $14.00 where initial support is likely to hold.

CSL Ltd (CSL) – trapped in a range

CSL has been trading in a correction mode since September 2018 which is still technically intact. The correction has lost momentum over the past two months and the price has been trading sideways, fluctuating between $173.00 and $194.50.

As long as the price stays within the boundaries of its current consolidation, our view on the stock is neutral and we rate it a hold.

NEXTDC (NXT) – downside risk

In our last update on December 2, 2018 we discussed that resistance of $6.81 is solid and highlighted that strong selling pressure is likely to arise around that level. The stock has traded lower over the past month and the current price action is approaching its support of $5.61 which is an important level to watch.

At this point the leading indicators offer no early indications on which direction the share price will eventually break, but we are of the view that downside risk prevails.

More information

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 are interested in finding out more, please contact your nearest Morgans office.

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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