Technical Analysis: 20 June 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
20 June 2019, 8:28 AM

Tabcorp Holdings (TAH) – heading higher

TAH has been trading sideways over the past year, fluctuating between $4.09 and $4.95. The recent price action broke above its down trend line drawn from the April 2019 high suggesting that the downswing is likely to be complete. The RSI and the MACD indicators have turned positive from oversold territory, pointing to higher price levels in the month(s) ahead.

The potential upside price target is $4.90. Over the medium term, our view on the stock is neutral and we favour further consolidation.

The Star Entertainment Group (SGR) – heading higher

SGR has been trading in a down trend since February 2018 which is still technically intact. The recent gap down has pushed the daily and weekly momentum indicators into oversold territory suggesting that the price is due for a bounce in the short term. Wednesday's price action broke above minor resistance of $4.00, indicating that last week's gap is likely to be filled. This means that there is a good probability of the price rallying to $4.44 in the near term.

Overall, the long term trend remains down and at this point we only favour a short term rally.

Aristocrat Leisure (ALL) – heading higher

In our last update on May 30, 2019 we discussed that the up trend is still in play and that the price is likely to overshoot our $30.00 price target. The December 2018 rally is still in progress but we note that the weekly and daily momentum indicators have now entered overbought territory.

While the rally could extend further and re-visit its previous high of $33.06, we anticipate selling pressure to arise around that level.

Jumbo Interactive (JIN) – heading higher 

JIN has been trading in a stellar up trend since September 2018 which is still technically intact. The recent price action broke above resistance of $17.82 suggesting that despite the overbought momentum conditions the rally is likely to continue.

The potential upside price target based on the break out is $20.50.

Macquarie Group (MQG) – tracking well

In our last update on May 13, 2019 we discussed the likelihood of the price declining further in the short term and recommended clients buy the stock around $115.00. The expected pull back unfolded to $114.35 and provided a great buying opportunity. The price has been rallying over the past two weeks and Wednesday's break above resistance of $123.29 suggests that the rally is likely to extend further.

The next potential upside price target is $129.50 however the price may overshoot.

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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