We expect National Australia Bank to run into selling pressure at $16.50. We favour the short side of this trade.
Today NAB announced first-half earnings will take a $1.14 billion after-tax hit – even before the impact of the coronavirus is accounted for.
NAB said investors will have to wait until it reports its half-year numbers on May 7 to see the impact of the pandemic on its “earnings and balance sheet including provisions, combined with capital and dividend implications”.
Betashares Crude Oil Index ETF-Currency Hedged
We expect the current pullback will create a “buy on the dip” opportunity. Our preferred names are ORG, STO and the OOO oil ETF.
Betashares Australian Equities is the Australian Equities Strong Bear Hedge Fund. The inverse ETF provides an approach to profit from, or protect against, a declining Australian sharemarket.
The ETF is designed to generate magnified positive returns when the market goes down (and vice versa) if the market was to rise.
As a technical reference point, we’re increasing our market hedging whilst the XJO index remains below the 5533 level.
The inverse BBOZ ETF will likely find support should the XJO continue to struggle below the 5533 resistance.
InvoCare announced it will raise up to $250m in equity at $10.40 through an underwritten institutional placement plus up to $50m through a SPP.
The funds will be used to pay down debt and shore up the balance sheet.
We add Xero to our watch list and look for support to develop within the $62 – $68 price range.
Accumulate for long term growth.
Look for the short-term momentum indicators to roll over and selling resistance to build within the range indicated below.
Since the above post, BXB ran into selling pressure at $12.25. At $10.50 BXB is back in a range where buying is likely to rebuild.
On Monday 30th March, the companies confirmed that they have received the necessary regulatory approvals for their all-stock merger of equals.
RTX is a “high conviction” buy.
Following the merger on Friday 3rd April, RTX has now rallied 20%+
Oil prices fell almost 10% overnight after rallying 37% at the end of last week.
The rally last week was ignited following President Donald Trump saying to CNBC on Thursday that he expected Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman to announce a deal to cut production by up to 15 million barrels, and that he had spoken to both countries’ leaders.
The meeting was set for Monday and then “by no surprise really”, it was canceled on the weekend and maybe rescheduled for Thursday.
These on-again-off-again negotiations with OPEC are common. We expect a deal of some description to be reached and a production cut should be forthcoming.
Watch oil for a classic “FTFT” technical pattern. We look to buy the dip on this pullback.
30-year graph of oil. 
Copper is now trading 50% below 2010 high. We recommend buying OZ Minerals as a proxy for long copper and gold. OZ Minerals has an expanding production profile as the Carrapateena copper-gold mine in South Australia comes online.
Buy Oz Minerals at $7.25
DON’T MISS OUT – Registrations are still open for Monday’s Opportunities in Review webinar.
SPECIAL SEGMENT: Normally our market analysis focuses on medium-term investment trends but with the increase of “work from home” hours in most people’s lives, we’ve created a special segment in this week’s “Opportunities in Review” webinar where we will cover strategies for day trading the current market volatility.
Webinar: The Importance of Accurate Price Valuations in a Volatile Market.
Leon will be hosting our next webinar on Monday at 11:30am (NSW Time).
Please use this form to register for the webinar. You will be emailed with a link when the webinar begins.
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