S&P500 & Global 100
Our Algo Engine has generated buy signals in the IVV (S&P500) and IOO (Global 100) ETF.
We see support building near the current lows.
CYB FY18 Earnings
The FY18 results announced last week disappointed on short term net
interest margin pressures in the Virgin Money book.
Post share price falls there is still material upside in CYB and we remain buyers of the stock in the $3.00 – $3.50 price range.
CIMIC & Downer EDI
CIMIC and Downer EDI present value following the recent share price weakness.
Downer EDI is still showing negative momentum on the short-term indicator and we recommend waiting for a turn higher.
Buy Crown Resorts
Crown is a current holding within the ASX100 model portfolio.
The share price was oversold at $11.50 and we’re now starting to see buying interest build.
Also, consider SGR with stop loss below recent pivot low.
Caresales.com – Technical Bounce
CAR is one of the “GARP” (growth at a reasonable price), names that we’ve been tracking.
With the stock bouncing off the $11.00 price level, we suggest running a tight stop-loss below the recent “pivot low” and giving the upside momentum a chance to develop.
Within the back drop of market volatility, it is difficult to know how this trade plays out in the short-term. Therefore, we highlight the need to run a stop loss.
We consider ALL & TWE as similar technical opportunities.
Carsales.com
Buy BHP At Current Levels
Our Algo Engine recently generated a buy signal in BHP and with the share price retracing back to $32, (following the sell-off in oil), we recommend investors accumulate the stock.
BHP trades on a forward yield of 5.2%, allowing for a 20% lift in FY19 earnings.
BHP
Watching Price Gap in Santos
Santos has a price gap in the chart at $5.25 and we’re looking for buying support to build at or slightly above this level.
Santos
Bluescope – Where Are The Buyers?
Bluescope has sold off from $19 (mid-year), to now be trading at $12.10. The stock was expensive and we’re now back in fair value range.
The outlook is uncertain as US and Asian steel spreads contract and lower steel prices negatively impact forward earnings.
Also, leading indicators for the domestic residential construction market are creating investor concerns.
We expect cautious outlook comments from the AGM trading update on Friday, 23 November.
Watch for buying interest to build above the $10.50 support level.
Bluescope
Buy Sonic Healthcare
In a volatile market, we continue to like Sonic Healthcare and recommend accumulating the stock with a view towards selling covered call options to enhance the income return.
SHL goes ex div $0.32 on the 6th March. June $23.50 strike call option generates an additional $0.75 per share of income.
Algo Buy Signal in SEEK
Our Algo Engine generated a buy signal in Seek and we’re now watching the $17.50 support level as a pick up in buying interest begins to occur.
CAR is another name to watch for increased buying activity following the recent sell-off.
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