ALGO UPDATE: Buy Signal In SHL

Posted on | by Todd | Leave a Comment on ALGO UPDATE: Buy Signal In SHL

On August 16th, shares of Sonic Health care posted an intra-day high of $23.76.

The next day the company announced that NPAT fell 5% to $427 million, which was the worst component  of a reasonably good earnings report.

Our ALGO engine triggered a buy signal on SHL on Tuesday at $21.46.

We consider SHL a defensive stock, which has been oversold, and has now found good buying support in the $21.40 area.

Investors with a medium-term outlook can look to buy SHL with an initial target of $22.35 and a $21.20 stop.

Sonic Healthcare

 

ALGO Update: Sell Signal In STO

Posted on | by Todd | Leave a Comment on ALGO Update: Sell Signal In STO

Our ALGO engine triggered a sell signal for Santos into the close of trade yesterday at $3.81.

Recently, Santos reported solid earnings growth and have paid down a higher percentage of debt than the market expected earlier in the year.

In addition, the current rebound in Crude Oil prices has been a factor in the stock rising from $3.25 to $3.80 over the last two weeks.

With the US refineries based in Houston still preparing to come back online, and hurricane Irma now targeting Southern Florida, Santos shares  could could firm into the the $4.00 resistance level, near-term.

Over a longer time-frame, we expect both Crude Oil prices and shares of Santos to trade lower.

We will watch these two markets closely and give specific trade levels once a clear trade signal emerges.

Santos

 

Take Profits In Newcrest Mining

Posted on | by Todd | Leave a Comment on Take Profits In Newcrest Mining

On August 8th, Spot Gold posted a low during the New York session of $1254.00.

Overnight, the yellow metal posted a 10-month high of $1341.00, a 7% gain in less than a month.

Over the same period of time, Newcrest mining has rallied from $20.25 to post a high of $23.70 early in yesterday’s session. This move represents a bit less than a 17% gain.

Even though the heighten geopolitical tensions which have supported the Gold price are still very much a part of the market, technical momentum indicators are signalling that investors can expect a short-term correction lower.

We believe the medium-term price trajectory in Gold will remain intact after the overbought conditions are alleviated.

As such, we suggest taking profits today in NCM, along with the smaller Gold miners: EVN, SAR, NST and OGC.

Newcrest

RBA Meeting Highlights A Busy Data Week

Posted on | by Todd | Leave a Comment on RBA Meeting Highlights A Busy Data Week

It’s going to be a busy data week for the Aussie Dollar, which could lead to some increased trade activity in the AUD/USD. 

The schedule includes the RBA and Current Account data on Tuesday, followed by the quarterly GDP data on Wednesday, and then the Retail Sales and Trade Balance report on Thursday.

Any of these reports could put further downside pressure on the Aussie Dollar and return the pair below the .7800 level for the week

Investors looking to profit from the AUD/USD trading lower can look to buy the BetaShare ETF with the symbol: YANK.

YANK is an inverse ETF, which means the unit price increases as the price of the AUD/USD decreases.

YANK also has a 2.5% weighting, which means a 1% change in the AUD/USD will correspond to a 2.5% move in the unit price.

The current price of YANK is $12.70.

We calculate that when the AUD/USD trades back to the January low near .7300, the unit price will trade at $16.75.

BetaShare ETF Yank

 

Gold Jumps Higher On Heighten Tensions Over North Korea

Posted on | by Todd | Leave a Comment on Gold Jumps Higher On Heighten Tensions Over North Korea

Spot Gold has started the week close to a 10-month high of $1338.00 as North Korea’s test of a hydrogen bomb triggered the usual shift to safe haven assets, while stock futures are pointing to a lower day for global equities.

Local Gold stocks have opened higher with Newcrest posting a 4-month high of $23.78 in early trade.

With the US markets closed for Labor Day holiday, we could see some consolidation as technical levels now seem stretched.

Over the medium-term, we expect both the price of spot Gold and the local mining stocks to continue with an upward trajectory.

However, we do see near-term scope for a technical pullback in Newcrest to the $23.20 level, and to the $2.38 level in Evolution Mining.

Newcrest

Evolution Mining

 

Algo Buy Signal in Healthcare Names

Posted on | by Leon Hinde | Leave a Comment on Algo Buy Signal in Healthcare Names

Resmed formed a “higher low” at $8.94 and found buying interest within our “buy zone”, as advised on the blog.

Sonic Healthcare should find buying support at $21.55. Apply a stop loss below the $21.55. SHL – Ex-Div 8/9/2017 (Div 46c, Franking 20%)

Ramsey Healthcare –  Strong reversal of yesterday’s low at $65.

CSL – Algo Engine buy signal at $125.00   CSL – Ex-Div 12/9/2017 (Div $0.91 Franking 0%)

Medibank – Now looks expensive. Take profit!