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.
The price of West Texas Intermediate crude oil dropped over 7% and reached a 14-month low of $50.15 in overnight trade in New York.
Yesterday’s price action extends the rout in crude oil to over 35% since posting a high of $76.90 on October 3rd.
In response, Saudi officials announced that they will attend next week’s G-20 summit in Argentina to meet with US and Russian representatives in front of the OPEC meeting on December 6th in Vienna.
Local oil names STO, OSH and WPL are all under ALGO buy signals and will stand to benefit from any indication that OPEC will cut production into 2019.
We see chart support for OSH at $7.00, STO near $5.25 and WPL in the $31.00 area.
Oil Search
Santos
Woodside Petroleum
Shares of TWE have extended yesterday’s gains and are 3% higher at $14.70 in early trade today.
The catalyst for the sudden rally has been the Chinese government’s clarification of on-line sales regulations for offshore companies.
Prior to yesterday’s announcement, TWE and other online vendors were uncertain of the on-line sales protocol past December of this year.
So far this year, TWE has registered over $500 million in sales from the Asian region, led by sales to China, which make up over 20% of its total group sales.
The next chart resistance level is at $15.60 with a longer-term target near $17.90.
Treasury Wine Estates
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.
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.
Shares of SEK have extended this week’s gains and have reached a two-week high of $18.55 in early trade today.
The online job search engine has been under an ALGO buy signal since August and is part of our ASX Top 100 Model Portfolio.
We consider much of the recent downside price action technical in nature and see solid chart support in the $17.50 area.
The next key resistance level is near $19.60 with a longer-term target above $20.25.
SEEK
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
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
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
Since posting an all-time high close at $19.85 on September 3rd, the share price of TWE has dropped over 30% reaching a 12-month low of $13.40 in early trade today.
This selloff has come despite the fact that the company has maintained their guidance for EBITS growth of 25% going into 2019.
Technically, the momentum indicators have reached an oversold level last seen in January of this year, which preceded a 23% rally over the following 2 months.
Treasury Wine Estates
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