Technical Analysis 14th June 2018

We take a look at three stocks within the Australian Listed companies space, the first ASX listed Beach Petroleum BPT has reached the price target and now become a take profit.

Our second company, ASX listed VIVA energy supplier of Auto fuel to retail and commercial enterprise along with the distribution of retail products, has entered the BUY ZONE.

And our international stock today is NASDAQ listed Microchip Technologies. A major volatility pattern now provides the Buy Zone entry within the continuing primary up trend.

Beach Energy Limited

Beach Energy Limited is engaged in oil and gas exploration, development and production and investment in the resources industry. The Company is engaged in the business of exploration, development and production of hydrocarbons.

In December 2017 technical analysis highlighted the BUY Zone within BPT, With the current Q4 price breakout above the $0.80 cents level a new trend is established. With a small ascending pattern confirmed, the closing price line is now moving over the Major resistance of $1.15 and into the BUY ZONE.

Recently BPT had moved past the target price and has found resistance at the Q1 2014 high, with bearish divergence showing on the Relative strength Indicator, a take profit is in place. BPT will now go back onto our watch list for further analysis.

Viva Energy REIT Limited

Viva Energy REIT Limited is a property and retail company. Segments include Retail marketing, Commercial marketing, Refining, and Supply and distribution.

It supplies a range of petroleum products, including automotive gasoline, liquefied petroleum gas (LPG) and diesel products, to a retail network of over 880 service stations. Viva energy supplies medium-to-large sized enterprises in, mining, construction, transport and industrial sectors.

Through Refining segment, it owns the Geelong Refinery, which is a complex refinery, it is responsible for supply, storage, transportation and distribution of crude oil and oil products into Australia and across the country to both its retail and commercial customer base.

Viva energy daily chart shows the price movement down from May 2017, shown is the breakdown point into a final capitulation low set during February 2018.

The following consolidation are of price is identified with 3 higher lows marked1,2 and 3 between February and May 2018. This bullish type of ascending pattern has shown a breakout above the resistance level at $2.05 and set a BUY ZONE entry with an initial price target of $2.25.

High trading volume remains consistent with accumulation at the breakout.

The relative strength Indicator 14 has moved over the key 50 level confirming price momentum on the breakout.
An important Stop loss set at $2.03 as this would indicated overall trend failure and potential continuation of a price channel.

Microchip Technology Incorporated

Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications.

In the semiconductor products space, the Company designs, develops, manufactures and markets microcontrollers, Analog interface devices, mixed signal and timing products.

The product portfolio comprises general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers, a spectrum of linear, mixed-signal, power management, as well as serial electrically erasable programmable read-only memories and serial flash memories.

A 5 point widening volatility pattern is the area of indecision found within a trend.
This 5 point volatility pattern has set a higher low at the past resistance level of $84.00 with the selling pressure now absent, price has followed on to a breakout at the upper level of the pattern into a BUY Zone.

A further price target of $126.00 is set with a Stop loss also set at $92.20. In the event of trend failure the important STOP Loss is to protect capital.
The primary UP trend has resumed. Supporting the price target is the Relative strength Indicator 14 moving back over the key “50” level with a volume spike on rising price.

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