ALGO Update: CBA And MQG Look To Be Slipping Lower

Posted on | by Todd | Leave a Comment on ALGO Update: CBA And MQG Look To Be Slipping Lower

Our ALGO engine triggered a sell signal in CBA on June 29th at $84.10.

Since then the stock has traded as low as $81.80 and has a clear downward bias. In addition, the share price of MQG has also moved lower since late-June and internal indicators appear to be picking up momentum on the downside.

The Aussie banks, in general,  look to have a downward bias relative to the prices seen in late-May.

As such, we see the next technical support target for CBA at $78.50 and at $85.90 for MQG.

For more specific chart analysis of the local banking sector, send us an email or give us a call.

CBA

 

MQG

Gold Update: Look To Buy Near $1200.00

Posted on | by Todd | Leave a Comment on Gold Update: Look To Buy Near $1200.00

Over the last 7 months, Gold has traded in a broad range between $1200 and $1300.

As inflation, interest rate expectations and equity market risks have fluctuated over that time, so has the price of Gold.

On balance, we expect the $1200.00 support level to hold and find buyers as the yellow metal moves back to the top part of the recent price range.

Investors looking for the price of Gold to move higher can look to buy NCM, EVN or the BetaShare Gold ETF with the symbol: QAU.

Spot Gold

 

Caltex – Price Support

Posted on | by Leon Hinde | Leave a Comment on Caltex – Price Support

FY17 refining margins have improved from last year after averaging US$12.40 versus US$10 over 1H16. 

We expect  CTX stock price to find support at the current price level and trade higher off the back of the earnings result announced in August.

Assuming DPS of $1.15, we have CTX on 3.7% yield, and when complimented with a covered call, we ‘re delivering 10 – 12% annualised cash flow.

Chart – CTX

ALGO Update: Buy Signal In CIMIC Group

Posted on | by Todd | Leave a Comment on ALGO Update: Buy Signal In CIMIC Group

Our ALGO engine triggered a buy signal in Cimic Group yesterday on the ASX close at $38.20.

After posting a new 52-week high of $41.10 on May 24th, shares of CIM had pulled back over 8% to 37.50  before recovering into Friday’s close.

A report that CIM is preparing to offload its 23% stake in Macmahon Holdings and restart its share buyback plan helped the stock find buyers.

This, combined with the credit rating upgrade from S&P in late May, gives CIM a positive outlook going forward.

At 23x earnings, the shares are mildly expensive, but the upside potential to $41.00 sets up a reasonable “buy/write” investment opportunity.

CIMIC Group

ETF Update: Exit The OOO Crude Oil Trade

Posted on | by Todd | Leave a Comment on ETF Update: Exit The OOO Crude Oil Trade

Despite a larger-than-expected fall in US Crude Oil inventories, the price of West Texas intermediate (WTI) Crude Oil failed to hold the recent gains above the $45.50 level and looks to be rolling over.

The US EIA reported that crude oil in storage fell by 6.3 million barrels versus an expected fall of 2.3 million barrels, which pushed WTI up to an intraday high of $46.25. 

However, news that OPEC producers have not agreed to renew their production cuts has prompted investors to believe that Crude Oil supplies are not going to balance in the near term.

We suggested buying the BetaShare Oil ETF with the symbol, OOO in the $12.35 area on June 22nd. We now suggest closing that position in the $12.75 area and looking for another opportunity to enter the market on a test of the $41.00 level.

BetsShare OOO