ALGO UPDATE: Stay Long QANTAS

Posted on | by Todd

Despite widespread downside pressure and increased volatility in the ASX 200 index, shares of QAN have stabilized above the $5.10 support level.

QAN will be releasing its September quarter trading update next Thursday and  holding their AGM next Friday.

We believe that both of these events will be supportive of higher share prices.

QAN has been in our ASX Top 100 model portfolio for over a year and we suggest investors look to add to long positions in the $5.35 to $5.45 range.

Our medium-term target is $6.70 with a longer-term view to $7.35.

QANTAS

 

 

ASX Ltd Has Reached The Buy Target

Posted on | by Todd

Last week we suggested a buy level for ASX Ltd near $58.00.

With yesterday’s low intraday print at $57.80, that downside buy target has been reached.

Also, with the share price sliding over 15% lower during the last month, internal momentum indicators are now oversold and a reversion higher looks likely.

At $58.00, the stock is on a forward yield of about 4%. We see the first level of resistance near $62.60 and up to $64.00 over the longer-term.

ASX Limited

Buy The Dip In Telstra

Posted on | by Todd

Since posting an intraday low of $2.60 on June 29th, shares of TLS have rebounded smartly and reached $3.40 in late August.

Last week’s market volatility has dampened investors interest in the stock over the last few days but, at $3.10, the share price is still 20% above the June low.

Tomorrow’s AGM will be a big test for bullish investors.

In focus will be the Telco giant’s “quantitative based” executive salary and bonus plan, as well as earnings updates across the company’s spectrum.

Given TLS’s target of 45% digital sales growth by 2021, we like the long side of the stock with a near-term target of $3.60.

Telstra

 

 

 

 

 

Buy And Hold Local Gold Shares

Posted on | by Todd

Last week’s extreme volatility in global equity markets has been a net positive for the local gold mining names.

After trading as low as $1060.00 in mid-August, Spot Gold reached a 2-month high at $1226.00 last Thursday.

As illustrated on the chart below, the yellow metal is still down more than 10% over the last 6-months.

However, with last week’s change in the overall risk dynamic of equities, investors may increase their holdings in Gold as a hedge against market uncertainty.

Combined with a weaker Aussie Dollar, we see stable gold prices lifting the shares of the local miners.

Our preferred names in the Gold sector are: NCM, SBM, SAR and EVN.

Spot Gold

Newcrest Mining

Santa Barbara

Saracen

Evolution Mining

ALGO Buy Signal For Brambles

Posted on | by Todd

Our ALGO engine triggered a buy signal for BXB into yesterday’s ASX close at $10.39.

This “higher low”pattern is referenced to the intraday low of $9.55 posted on August 8th.

As illustrated in the chart below, BXB has filled the price gap dating back to mid-August, which will provide good support down the the $10.00 area.

We have an estimated upside price target near $12.75 over the medium-term.

Brambles

 

 

Exit Short CFD Positions in Suncorp

Posted on | by Todd

Our ALGO engine has triggered another buy signal for SUN into yesterday’s ASX close at $13.68.

SUN has been a popular short CFD position on our SAXO Go trading platform since trading at $15.50 two months ago.

We now suggest that investors holding short SUN positions buy them back to close the trade.

After our first ALGO signal on October 2nd, we suggested that SUN would be a reasonable buy/write strategy near the $13.60 support line.

Ongoing deleveraging in the domestic market may challenge the $13.60 price point and we will update SUN in a future posting.

Suncorp

 

 

Technical Buy Signal For Treasury Wine

Posted on | by Todd

Our ALGO engine triggered an initial buy signal for TWE on September 20th at $17.45. Another buy signal was generated into yesterday’s close at $17.15.

The share price has open sharply lower today and has reached a 4-month low of $16.40 in early trade.

We see the recent price action as technically oversold and see good upside potential to the $20.00 area over the medium-term.

It’s worth noting that TWE posted a 33% increase in NPAT in its last report, and has given guidance of 20% growth in volume and a 12% increase in sales for calendar 2018.

Treasury Wine Estates

 

QANTAS Reaches Key Support Near $5.20

Posted on | by Todd

Since posting an intra-day high of $6.92 on August 31st, shares of QAN have slid over 20% lower and reached a 7-month low of $5.38 in early trade today.

Much of this correction has been driven by higher oil prices, which we believe are transitory and largely covered by QAN’s in-house dynamic hedging operations.

Technically, the share price reflects a deeply oversold reading on the relative strength indicator (RSI) and looks to be exceptional value at current levels.

QAN is part of our ASX Top-50 portfolio and we see initial resistance near $6.65, with an longer-term target of $7.25.

QANTAS

 

 

Lend Lease Is Nearing The Buy Zone

Posted on | by Todd

Our ALGO engine triggered a buy signal for LLC last Friday at $18.70.

We mentioned in our commentary that investor support should emerge near the $18.00 support level; the low for today has been $18.02

From a technical perspective, internal momentum indicators have reached an extremely oversold level and a price reversion higher looks likely from here.

We see the first level on upside resistance near the October 2nd high of $19.60.

Lend Lease

The Sky Is Clearing For Flight Centre

Posted on | by Todd

After getting some bad press about excessive pricing, shares of Flight Centre have slid over 25% lower during the last 6 weeks and reached an 8-month low of $50.25 last Thursday.

Our ALGO engine triggered a buy signal last week and the internal momentum indicators are reflecting an oversold reading.

At the current price, FLT shares are trading at just under 16X forward earnings and the company has announced they will retain their $3.20 FY2019 annual dividend.

As such, we see good investor value in the stock with an initial upside target of $65.15.

Flight Centre