ALGO UPDATE: Fortescue Is Holding Technical Support

Posted on | by Todd | Leave a Comment on ALGO UPDATE: Fortescue Is Holding Technical Support

Despite the 3% drop in Iron Ore prices overnight, shares of FMG have firmed to $4.83 in early trade.

Comments from commodity traders suggest that the recent dip in Iron Ore prices may be more of a seasonal cycle than a fundamental shift to lower demand.

The technical outlook has improved this week as the price action remains above the $4.60 consolidation area from mid-December, and internal momentum indicators are pointing higher.

FMG is part of our Top 50 Model portfolio and we suggest that investors can buy the stock at current levels for a move back into the $5.40 area over the medium-term.

Fortescue Metals

 

 

 

 

SunCorp Slips On Negative Research

Posted on | by Todd | Leave a Comment on SunCorp Slips On Negative Research

Shares of SUN are down 1% in early trade at $13.76.

A research note from a local investment bank has lowered the guidance on SUN to “under-perform” and adjusted their price target to $12.45.

The report cites higher operating costs and lower margins to rationalize the lower price.

Our ALGO engine triggered a sell signal in SUN at $14.05 on November 10th; we agree with the downside target of $12.45.

SunCorp

 

 

Keep TWE On The Radar

Posted on | by Todd | Leave a Comment on Keep TWE On The Radar

Since posting an all-time high of $18.09 on February 22nd, shares of TWE have slipped over 6% lower and touched the $16.84 level yesterday.

We consider TWE one of the best growth stocks on the ASX, but with a P/E of over 35X we prefer to buy it at lower levels.

From a technical perspective, we see good support in the $16.35/40 area and will advise on entry levels in subsequent postings.

Treasury Wine Estates