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
BHP: Resistance In The $24.00 Area
Since posting an intra-day low at $22.50 on May 5th, shares of BHP have lifted over $1.00 to $23.85.
Against a back drop of weakening fundamentals in the Iron Ore and Coal markets, we see this corrective move higher running into resistance in the $24.00 area.
General market downside risk is also adding to our interest in placing orders to exit long positions in BHP at $24.00 going into the weekend.
ALGO Sell Signal in Brambles
The ALGO engine triggered a sell signal on Brambles at yesterday’s close near 10.50.
We don’t see a tremendous amount of downside in the stock with good price support in the $9.60 area.
Internal momentum indicators on the daily charts confirm the ALGO signal and a near-term overbought condition.
We have been suggesting that clients holding long positions take profits or write covered calls in the $11.00 strike price.
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