ETF Watch – OOO (Oil ETF)
Following the recent Algo Engine buy signal in OOO.AXW, the ETF has now rallied over 10% from the $12.74 low formed on the 5th of May.
NAB Shares Still Pointing Lower
On May 4th, we posted a report that the NAB’s H1 results would likely lead to a sell off back to the January lows of $30.50.
After going ex-dividend today, NAB shares have traded down to $31.65. A combination of the new bank levy and increased bad debt provisions will likely continue to weigh on the stock price.
We maintain our $30.50 target and suggest buying put options into June or selling covered calls to enhance portfolio returns.
Chart Watch – XJO Index
The XJO is now consolidating within a trading range of 5790 as support and 5950 resistance.
Property Stocks Under Pressure
After the strong rally in SGP, LLC, GPT and MGR, the price action looks to be rolling over, pointing lower, and we’ll watch these names closely. SGP appears to be showing the most selling pressure with the current price action taking out the 4.74 low formed on the 26th of April.
Our Algo Engine generated a buy signal on MVA.AXW (Vaneck Vectors Australian Property ETF) back in November at around $18.40, the ETF traded up to $21.30 and in the last week it’s starting to run into selling pressure.
Cyber Security ETF: HACK
With a widespread ransomware attack hitting thousands of computer systems over the weekend, we expect increased interest in the cyber security Exchange Traded Fund with the symbol: HACK.
HACK is made up of the leading companies in the global cyber security sector. These stocks include Symantec, Check Point and Cisco Systems.
This ETF started trading in September of last year and offers investors exposure to a diversified portfolio of the world’s largest cyber security companies in a single transaction.
BetaShare ETF: HACK
Transurban – Price Retracement
The current sell-off in TCL will soon offer a reasonable entry level.
With US yields remaining under pressure, we continue to like yield sensitive names. Especially, if we can pick them up at a discount following investors taking profit from the recent strong rally.
The chart below shows the value range to enter TCL.
Algo Buy Signal – Inghams
ING is on the fringe of the stocks that we tend to focus on, however, given the recent Algo Buy signal at $3.05, we’ve now added this to our watch list.
Algo Short Signal – Flight Centre
Our Algo Engine is flagging the lower high structure in FLT.
Algo Buy Signal – GrainCorp
Our Algo Engine generated a buy signal on GrainCorp back in early March.
Following the strong share price move the stock now looks fully valued short term.
GNC delivered a solid 1H result and the full year forecast of around $160m should be achievable. Based on DPS of $0.32 the stock trades on 3.2% yield.
Chart Watch – GDX (Gold ETF)
GDX is creating a higher low formation and we see further upside. Stop loss should be placed at $28.00
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