Bendigo and Adelaide Bank is under Algo Engine sell conditions and is now approaching overbought levels and we expect to see the short-term indicators turn negative.
The chart below illustrates where we anticipate selling pressure to build.
Betashares Global Gold Miners ETF is now under Algo Engine buy conditions.
The chart below shows the range where we’re looking for buying interest to begin building.
Computershare had their investor day today and the market has reacted negatively to a softer earnings outlook.
We’ve been on the short-side of this trade following the lower high formation and the Algo Engine sell signal earlier this year. The CPU business is exposed to a number of structural headwinds and we expect further weakness in the share price.
Pendal Group is now under Algo Engine buy conditions and was added to the ASX 100 model portfolio earlier this month.
Qantas Airways has been under Algo Engine sell conditions since forming a lower high in February at $6.25. The stock is now trading at $5.25 and we see little reason to change our short-side bias on this one.
Computershare is under Algo Engine sell conditions and has been forming a lower high pattern since topping at $20.50, September last year.
We continue to view the market’s assessment of the future earnings growth picture, as miss-guided. The factors that have lead to the recovery in earnings are transitory and the 20X PE and 2.5% yield, makes CPU too rich for our liking.
Our downside price forecast over the next 12 – 18 months is $15.00.
Carsales.Com is under Algo Engine sell conditions and with the price approaching $14 we expect selling pressure to build.
The chart below illustrates the range where selling is likely to increase.
GrainCorp is under Algo Engine buy conditions and we highlight the buying interest following the share price finding support at $7.10.
Following the approximate 10% sell-off within the various ETFs which provide exposure to Asia large cap and more specifically China, we now have a series of Algo Engine buy signals to consider.
The IZZ.AXW iShares China Large Cap and the IAA.AXW iShares Asia 50 are two high quality considerations. If investors are seeking a tilt towards the faster growth tech sector, we suggest adding the Betashares Asia Technology Tigers to your watch list.
Over the past 6 months, we’ve been promoting Lendlease as a high conviction buy-side idea, based on the long-term value the business offers.
The stock price has rallied 7% this month, following The Australian newspaper reporting Japanese group Mitsui may be considering a takeover and breakup of LLC.
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