Potential Triple Top In Woolies

Posted on | by Todd | Leave a Comment on Potential Triple Top In Woolies

Our ALGO engine triggered a sell signal on WOW on November 2nd at $26.05.

Since then the share price has lifted over $1.00 as speculation continues surrounding the ACCC’s decision to reject BP’s offer to buy WOW’s 500 petrol station network.

A potential “triple top” formation is in play in the $27.70 range and we suggest exiting long positions for now.

CFD traders can look to sell WOW on our SAXOGo Platform in the $27.30 area with an initial target of $26.15 and a $28.10 stop.

Woolworths

 

 

 

The Technical Picture Is Improving For Telstra

Posted on | by Todd | Leave a Comment on The Technical Picture Is Improving For Telstra

Shares of TLS have traded back into a significant technical price area.

Looking back to mid-August, the share price was beaten down from $4.33 to $3.50 just 10 trading sessions. This price action has left several gaps on the daily chart which are now being challenged.

TLS goes ex-dividend on March 1st and is on about a 6% yield at current prices.

It’s reasonable to believe that the current technical buying could lift the share price back over $4.00, which would still pencil out to over 5% yield, fully franked.

We still believe accumulating shares of TLS in this price range will benefit investor portfolios throughout 2018.

Telstra

 

Buy The Dip In Westfield Corp

Posted on | by Todd | Leave a Comment on Buy The Dip In Westfield Corp

It’s been just under a month since the Westfield board recommended shareholders accept $32 billion takeover from French firm Unibail-Rodamco.

Since then, the share price has softened, has never traded at the cash and script offer of $10.01 per share, and closed at a post-announcement low of $9.18 on Friday.

Part of the recent weakness seems to be tied to the cash component of the deal valued at USD 2.67 per share.

The AUD/USD has risen from .7550 to .7850 since the deal was announced, which roughly corresponds to the 4.5% fall in the WFD share price since December 12th.

With the stock going ex-dividend on February 13th for 16.43 cents per share, we believe WFD is good value in this range for a move back into the $9.80/90 area in the near-term.

Westfield

 

ETF Watch – Algo Signal on AUD & USD ETF’s

Posted on | by Leon Hinde | Leave a Comment on ETF Watch – Algo Signal on AUD & USD ETF’s

Our Algo Engine generated a buy signal in the AUD Betashares Australian Dollar ETF on the 11th December at $14.75. Since then, the ETF has rallied 10% in line with the Australian dollar bouncing from .7510 to .7870.

On the flip side, we’ve seen the USD Betashare ETF make lower lows and lower highs.

We feel that the  counter-trend which has played out during the past month will begin to normalise and we are likely to see a shift back towards USD strength.

 

 

Gold Rally Capped By FED Minutes

Posted on | by Todd | Leave a Comment on Gold Rally Capped By FED Minutes

Spot Gold prices reversed off a 4-month high of $1232 as the FOMC minutes suggested that the US FED is prepared to lift overnight rates up to 5 times in 2018.

The yellow metal has rallied over $80.00 over the last 3 weeks and has gained in 14 of the last 16 trading sessions. The internal momentum indicators are now in “overbought” territory which warns of a downside correction.

Much of the recent rally was supported by the notion that the FED would take a less aggressive monetary posture, which would weaken the US Dollar.

We maintain a bullish outlook for Gold but would look for a pullback to re-enter into long positions.

As such, we suggest taking profits in NCM in the $23.20 area and look to buy back at or near the $22.60 level.

Newcrest Mining

 

 

ALGO UPDATE: Buy The Dip In Treasury Wine Estates

Posted on | by Todd | Leave a Comment on ALGO UPDATE: Buy The Dip In Treasury Wine Estates

Shares of Treasury Wine Estates are down over 1% in early trade at $15.60.

This is almost $1.00 lower than their all-time high of $16.55 posted on December 20th.

TWE shares rose close to 50% in calendar year 2017 on increasing revenue and strategic acquisitions in Australia, Europe and the USA.

Our ALGO engine triggered a buy signal in TWE on July 11th at $12.45 and in our Top 50 model portfolio since September 2014.

We suggest adding to long TWE positions on this pullback to the $15.50 area for a move back above $16.50 over the medium-term.

Treasury Wine Estates

 

TabCorp Shares Are In The Sell Zone

Posted on | by Todd | Leave a Comment on TabCorp Shares Are In The Sell Zone

Shares of TabCorp have rallied past our initial profit target of $5.25 and now look technically “overbought”

After trading as high as $5.73 on December 27th, the share price has backed off to $5.50.

We still like the growth prospects for TAH for 2018, and beyond, but suggest taking profits on long positions and looking buy on a pull back into the $5.20 area.

  TabCorp