Technical Analysis 7th June 2018

We take a look at three stocks within the Australian Listed companies space, the first ASX listed Brickworks This equity has emerged from the price recent retracement into the BUY ZONE.

Our second company, ARB has featured on Technical analysis in 2 prior Buy zone entries the equity now enters a new BUY Zone.

The third Australian listed equity is OXL which has also featured with 2 prior Buy zone entries meeting price targets in a continuing Up trend.

And our international stock today is NASDAQ listed PayPal. The stock has recently completed a major consolidation pattern and enters the Buy Zone within the continuing primary up trend.

Brickworks Limited

Brickworks Limited is engaged in manufacturing a range of building products. The Company is engaged in the development and investment activities. Its Property division includes sale of property and investment in property trusts.

Its Investment division holds investments in Washington H Soul Pattinson and Co. Limited. Brands include Austral Bricks, Austral Masonry, Austral Precast, Bristile Roofing, Auswest Timber, Bowral Bricks, Daniel Robertson and Nubrik. The Company operates within Australia and New Zealand.

BKW Weekly chart shows a wide consolidation price pattern between support at $11.60 and resistance of $16.00, shown is a higher support level at $12.50 followed by 3 higher lows in price forming a multi quarter triangle pattern.

With a continuing primary move under way the breakout over internal price resistance of $15.40 shows a retracement back to the developed neckline point at $14.80.

Supporting this Buy Zone Entry signal, is the Relative strength Indicator 14, as it moves higher over the key “50” level and is a sign of positive price momentum with a further price target set at $18.00 in this primary move.

The important STOP LOSS is indicated at $14.90, should price retrace to this level it would indicate a break down in price structure.

RB Corporation Limited (ARB)

RB Corporation Limited (ARB) is engaged in the design, manufacture, distribution and sale of motor vehicle accessories and light metal engineering works.

The Company’s segments include Australia, USA, Thailand and Middle East & Europe. ARB offers various products, including air lockers and accessories; ARB compressors; protection equipment, such as rear end protection, summit protection range and under vehicle protection; and ARB fridge freezers; vehicle lighting, cargo barriers batteries and battery solutions, fuel and water tanks.

ARB has provided 2 Buy Zone entries from Q1 2016 and again provides a Buy Zone entry in this primary trend.

A Bollinger band overlay has the price of ARB moving along the Upper band, this shows a price structure operating at relative high momentum.
The recent higher low from the Trend line, preceded the breakout into the current Buy Zone with a further price target of $24.60.

The key Relative strength indicator 14 remains over the 50 level also confirming positive price momentum, with higher trading volume spikes during upward price moves indicates accumulation.
An important Stop loss set at $20.83 as this would indicated overall trend.

OZ Minerals Limited

OZ Minerals Limited is a mining company with a focus on copper. The Company’s principal activities are the mining of copper, gold and silver, carrying out exploration activities and development of mining projects. The Company’s segments are Prominent Hill, which is engaged in mining copper, gold and silver from Prominent Hill Mine, a combined open pit and underground mine located in the Gawler Craton of South Australia; which is engaged in exploration and evaluation activities. Other projects and include interests in Jamaica and Chile with Minotaur Exploration and Toro Energy Ltd.

The first BUY Zone in October 2016 the second in June 2017 both have met the respective price targets.

The weekly chart of OZL again provides a new BUY Zone entry above the support / resistance level established at $9.90.

Prior to the current BUY Zone is a continuation of the primary up trend established from Q1 2016, the primary trend is expected to continue following the retest of the $9.90 price level after the breakout above resistance.

With confirmation of price strength shown with the Relative strength Indicator 14 remaining above the key “50” level, a further price target of $13.48 has been established. A new Stop loss level is indicated at $9.11 below the key support level, price movement to this level would indicate a trend reversal.

PayPal Holdings, Inc.

PayPal Holdings, Inc. is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants.

It operates a two-sided global technology platform that links its customers, both merchants and consumers, around the globe to facilitate the processing of payment transactions with PayPal Credit account, credit and debit card or other stored value products.

It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom.

The weekly chart of PayPal shows a significant primary UP trend from the breakout of price at the $44.00 resistance level during Q1 2017.
Price has currently completed a breakout of the Bullish Descending Pennant.

A bullish pennant is confirmed with the 3 touch low support pattern shown at $73.50.
During this consolidation the Relative strength Indicator 14 has remained above the key “50” level and has again turned higher indicating positive price momentum.

The MACD indicator also provides a swing “buy” signal at the median zero level.
In the event of trend failure the important STOP Loss is shown at $75.80, this would indicate a breakdown of the price into a potential retest of past minor support levels.

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