Algo Sell Signal – AZJ
Aurizon has made a lower high formation and we feel the recent rally from $4.75 to $5.30 will run into selling pressure.
New High Close For Treasury Wine Estates
Shares of TWE posted a new all-time high of $16.22 on the ASX close last Friday.
Our ALGO engine triggered a buy signal on TWE back in July at $12.55.
The stock is trading at 40X earnings with the 12 month EPS currently expected at just over 23%.
The internal momentum indicators look good and we would look to take profits on a move into the $16.90 to $17.00 area.
Treasury Wine Estates
ASX 200 Index finished the week up 0.08%
The S&P ASX 200 Index finished the week 0.08% higher.
The best performer was the Telecoms sector, up 7.0% (Telstra rising by 7.9%) and the worst performer was the Industrial sector, down 1.3%.
XJO Index
Lendlease – Finding Support Near $15.50
Our Algo Engine generated a buy signal in Lendlease back in October. Since then the stock has moved down to find buying support at $15.50.
LLC is in the ASX 50 model and we expect buying support will soon see the share price recapture $17 in the weeks ahead.
Place a stop-loss order on a break back below $15.50.
Lendlease
Algo Buy Signal – Westpac
Our Algo Engine generated a buy signal in Westpac on the recent “higher low” chart formation.
Place a stop-loss on a break back below $30.50 with an upside target $33.00
Westpac
Algo Update – Buy BHP
We consider BHP a preferred holding within the ASX 50 model portfolio.
The Algo Engine generated a buy signal on May 5th at $22.60.
With both oil and iron ore prices remaining well supported, BHP should continue to find buying interest.
Consider a stop-loss below $25.00 and sell $29.50 March call options to enhance the yield.
BHP
ETF Watch – IZZ China Large Cap
Our Algo Engine has flagged the higher low formation in the iShares ETF, IZZ China Large Cap.
IZZ has retraced from $65 last month to a low of $58.61 in Thursday’s session. Following stronger data out of China on Friday, the ETF had a strong close to the week.
Consider buying with a stop-loss below $57.40
5G Is Giving TLS A Boost
Since posting a low of $3.34 on November 28th, shares of Telstra have gained over 10% reaching a high of $3.72 in early trade.
Much of this recent optimism in the company stems from TLS wrapping up the second phase of their transmission network upgrade and deploying their high capacity optical technology, which is known as “5G”
This increased capacity and faster download speed is shaping up as a winner as TLS is outperforming its rivals on the new iPhone X and iPhone 8 orders.
Because TLS has greater network capacity, they are able to charge a premium on these new mobile phone systems.
Technically, the next price hurdle will be at $3.83, which is the bottom end of a gap lower on August 29th.
Telstra
Aussie Dollar Drops On Weaker Trade Balance Report
The Aussie Dollar dropped close to 1% overnight as yesterday’s domestic trade balance numbers showed a steep contraction for the month.
The AUD/USD hit a six-month low at .7500 as the trade surplus fell to $105 million from $1.6 billion the month before. The street had expected a surplus of $1.4 billion……10 times higher than the actual print.
The sharp drop was driven by a 3% fall in exports and a 2% increase in imports. Details of the report showed much lower levels of exports of Iron ore and coking coal.
There are several names on the ASX that earning revenue overseas and will benefit from the falling Aussie Dollar.
These include QAN, RHC, TWE and NCM.
QANTAS
Ramsay Health Care
Newcrest Mining
Treasury Wine Estates
ALGO Update: QANTAS Shares Are Ready To Takeoff
Our ALGO engine triggered a buy signal in QAN on November 24th at $5.60.
In the days after that, the share price slipped down to $5.30 as crude oil prices rallied into the OPEC meeting and the Aussie Dollar traded back into the .7600 handle.
Both of the those fundamental headwinds have been reversed and the share price has reached the $5.50 level in early trade.
Shares of QAN are over 70% higher than the January lows, which makes the company one of the best performers on the ASX this year.
We expect that the combination of their share buy-back program, lower operating costs and rising international capacity growth will support the share price into Q1 2018.
Investors looking to profit from QAN shares can either buy them outright or buy their CFDs on our SAXO Go platform.
QANTAS
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453