Sonic Healthcare is looking oversold and we believe buying support will build within the $21.50 – $22.50 price range.
SHL has a large percentage of their diagnostic equipment revenue based in US Dollars. As such, the company will benefit from the lower Aussie Dollar.
CSL is one of the best performing stocks within the ASX20, ASX50 and ASX100 model portfolios.
Since being added in May 2015 the share price is up 113% including dividends.
The recent retracement in the share price provides another opportunity for investors to add CSL to their portfolios.
CSL
RMD has rallied from $13.75 to $14.75 following last weeks reported strong 1Q19 result, which included EBIT +28% on the same time last year.
The company also delivered robust top-line growth, which came in ahead of market expectations. Gross margins held at 58+%.
We anticipate EPS growing from US$3.70 in FY19 to US$4.50 in FY21 and revenue growing from US$2.9 billion to US$3.5 billion over the same period.
Resmed
Despite the turmoil on Wall Street this week, we’ve seen home-builders, autos and a handful of other companies deliver positive returns of 5%+.
Money is rotating out of technology, (down 12% this month) and into the over-sold sectors and stocks from the past 9 months.
So where is the bottom in the XJO?
As illustrated in the chart below, the 50% retracement level in the XJO is approximately 5550 points.
Whilst there’s no certainty that buying support will build at this level, history suggests that investors should be watching the short-term momentum indicators closely for an inflection point.
In Monday Morning’s “Opportunities in Review” webinar, we’ll identify the corresponding price levels within the ASX 100’s “biggest and best” companies.
The NASDAQ and Dow Jones Index have further downside before finding their respective 50% retracement levels.
With Woolworths trading back below $27.50, we believe the share price now represents good investor value.
The $26.50 – $27.00 price range is an attractive buying opportunity.
On a rally back above $28.00, we recommend selling $29.00 Euro-style March call options to enhance the return.
Woolworths goes ex-dividend for $0.43 on the 1st of March.
We recommend investors add the IAA, (Asia top 50 ETF), and IZZ, (China Large-Cap ETF) to their watch lists.
There is a high probability that we’re now looking at oversold levels on both of these ETF’s and value is beginning to emerge.
IZZ China ETF
Based on the positive production numbers from their quarterly update earlier this month, we believe BHP offers value within $29 – $31 price range.
The stock is currently under an ALGO buy signal from $30.70 on September 11th. The recent price action reflects a potential “double bottom” pattern near $30.50.
BHP goes Ex-dividend for $0.70 on the 8th March.
Sorry, but this content is restricted to our members.
Please login with your account or register for a free trial. If your trial has expired, then you may renew it here.
If you are having an issue with your account, then please get in touch with us.
ANZ is expected to report its FY18 result on 31 October.
The share price has now broken the June low support area and looks vulnerable to more downside pressure.
NAB is scheduled to report its FY18 result on the 1st of November. The next downside target is near the $24.00 area.
Vaneck Vestors Australian Bank ETF has been under ALGO Engine sell conditions since early July. The sell-off so far represents a 20% correction.
These three medical-related names are all under ALGO Engine buy signals.
Increasing volatility in the broader market often times forces investors to look to defensive names for safety.
CSL, SHL, and RMD are all three proven performers and represent good value at current levels.
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
Or start a free thirty day trial for our full service, which includes our ASX Research.