South 32

Posted on | by Leon Hinde

South32 is a globally diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America.

Earlier this week, Citi sent a note to clients suggesting Fortescue may look at a mega deal to buy the $9.7 billion diversified miner.

S32 remains under Algo Engine sell conditions, however, the opportunity is worth keeping an eye on, following the correction in the share price from $4.30 to $2.05 over the past 2 years.

XJO

Posted on | by Leon Hinde

The chart below shows the XJO in after hours trading, which captures the US close on Friday night.

We anticipate the XJO opening Monday below the short-term momentum indicators, which could be the early signs of a large number of short positions within the ASX 200, beginning a corrective move.

S&P500

Posted on | by Leon Hinde

We highlight the lower high formed from Friday’s close and the break below the short-term momentum indicator.

This should be monitored on Monday when the US reopens and investors should also be looking at the same patterns in the NASDAQ.

We’ll cover more on these trends in Monday night’s webinar.

Nike – Sell

Posted on | by Leon Hinde

Nike is expected to report EPS of $0.18, down 70% from the prior quarter. Revenue down 20% to $8bn.

We see Nike as a shorting opportunity coming into the June quarter earnings result.

The above post was made on the 29th May and since then, the US market has pushed higher. With retail likely to fall short of earnings estimates, we remain cautious heading into next month’s earnings.

The below chart shows the updated price action in Nike, and of importance, the close below the momentum indicators.