Domino’s Pizza – Algo Signal

Posted on | by Leon Hinde

Domino’s Pizza Enterprises is now under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

We see price support between $65 & $71.

Domino’s Pizza Enterprises has now rallied 10% from our entry-level. While DMP’s PE multiple remains elevated at 34x forward earnings, EPS growth is forecast to be 8 -10% and the FY21 yield is 1.9%.

We suggest traders use the short-term momentum indicators as a strategy to manage the timing of taking the short-term. We don’t consider Domino’s Pizza Enterprises a core portfolio holding and feel it makes greater sense to trade rather than hold.

ASX – Finding Support?

Posted on | by Leon Hinde

The chart below shows the range where we will be watching for the short-term momentum indicators to turn higher.

The price action now sits at 50% retracement of the March to November range. We expect to see buying interest begin to rebuild.

Transurban – Buy

Posted on | by Leon Hinde

Transurban switched to Algo Engine buy conditions on 30 October at $13.10. The stock has since rallied to $15.60 and has now retraced back 50% to find support at the current price of $14.30.

Investors should watch the short-term momentum indicators as we’re likely to see a pick up in buying interest, supported by an attractive defensive dividend yield.

This could be a short-term trade for the nimble, or a solid entry-level for long-term buy and hold investors. Investors may also consider adding the covered call option to enhance the yield.

For more detail on the option strategy , please call our office on 1300 614 002.