ALGO UPDATE: Fortescue Is Holding Technical Support

Posted on | by Todd | Leave a Comment on ALGO UPDATE: Fortescue Is Holding Technical Support

Despite the 3% drop in Iron Ore prices overnight, shares of FMG have firmed to $4.83 in early trade.

Comments from commodity traders suggest that the recent dip in Iron Ore prices may be more of a seasonal cycle than a fundamental shift to lower demand.

The technical outlook has improved this week as the price action remains above the $4.60 consolidation area from mid-December, and internal momentum indicators are pointing higher.

FMG is part of our Top 50 Model portfolio and we suggest that investors can buy the stock at current levels for a move back into the $5.40 area over the medium-term.

Fortescue Metals

 

 

 

 

SunCorp Slips On Negative Research

Posted on | by Todd | Leave a Comment on SunCorp Slips On Negative Research

Shares of SUN are down 1% in early trade at $13.76.

A research note from a local investment bank has lowered the guidance on SUN to “under-perform” and adjusted their price target to $12.45.

The report cites higher operating costs and lower margins to rationalize the lower price.

Our ALGO engine triggered a sell signal in SUN at $14.05 on November 10th; we agree with the downside target of $12.45.

SunCorp

 

 

Keep TWE On The Radar

Posted on | by Todd | Leave a Comment on Keep TWE On The Radar

Since posting an all-time high of $18.09 on February 22nd, shares of TWE have slipped over 6% lower and touched the $16.84 level yesterday.

We consider TWE one of the best growth stocks on the ASX, but with a P/E of over 35X we prefer to buy it at lower levels.

From a technical perspective, we see good support in the $16.35/40 area and will advise on entry levels in subsequent postings.

Treasury Wine Estates

 

Newcrest Firms As Spot Gold Continues to Climb

Posted on | by Todd | Leave a Comment on Newcrest Firms As Spot Gold Continues to Climb

As global markets become more concerned about the impact of US tariffs and the escalation of trade disputes, the price of Spot Gold has firmed back to the $1340 level in late NY trade.

Our preferred local gold stock to buy is Newcrest, which has recovered smartly from the $21.20 low last week to reach $22.20 in early trade today.

The correlation between Spot Gold and NCM has been around 70% over the last 6-months.

As such, we would expect a break of the $1350 level in the spot price to correspond to just under $23.00 for NCM.

Newcrest was added to our Top 50 Model portfolio on December 13th at $22.10.

Newcrest Mining