XJO Creates A Higher Low at 5991

Posted on | by Leon Hinde | Leave a Comment on XJO Creates A Higher Low at 5991

The XJO has formed a “higher low” formation at 5991 and the short-term momentum indicators have turned positive.

With most ASX200 constituents trading on extended multiples, we feel the big four banks will need to find buying support, in order for the index to trade higher.

Any move higher from the 5991 low will likely be moderate and index investors can consider the GEAR ETF to gain additional leverage.

Our Algo Engine triggered a buy signal in the GEAR ETF on 17th January at $22.66.

Stop-Loss orders are  recommended at $22.45.

XJO

GEAR (ETF)

 

Energy Names – Best Buy-Side Opportunities

Posted on | by Leon Hinde | Leave a Comment on Energy Names – Best Buy-Side Opportunities

Within the ASX 50,  OSH, STO, WPL, ORG & BHP are the names investors consider when looking for exposure to Oil and LNG.

Currently WPL, ORG and BHP remain in our ASX50 model following a series of structural “higher low” formations.

OSH is not currently in our model portfolio.

The negative we see in the stock relates to market concerns surrounding their stretched balance sheet.

Oil Search has committed to substantial projects in PNG and Alaska and should oil prices fail to hold $60 – $80 per barrel, Oil Search may need to raise capital.

This week, Oil Search reported solid 4Q17 production at the upper end of their guidance range, with revenue of US$389mn.

Our preference remains adding long exposure on any pullback in BHP, WPL & ORG.

We are also watching for the next Algo Engine buy signal in the oil ETF OOO.AXW.

 

 

Algo Update – Invocare

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Invocare

Our Algo Engine triggered a recent buy signal in IVC and the stock has continued to drift lower.

The next range of support is $14.30 , followed by the up trending support line marked as “support 2” in the graph below.

The negative price action over recent days is being driven by the market’s reaction to a change in industry competition in the UK and concerns that similar challenges may emerge in Australia.

IVC reports full year earnings result on 19th February.

InvoCare