China ETF – IZZ

Posted on | by Leon Hinde

ASX:IZZ is under Algo Engine buy conditions. We expect buying interest to increase within the $55 – $60 price range.

Traders may wait for the third factor to align, an upturn in the momentum indicators. Watch for the stochastic to move higher or the price action on the main chart to cross above the 10-day average.

21/5 Buy IZZ

31/5 IZZ remains above the 10 day average.

Cure ETF – Buy

Posted on | by Leon Hinde

CURE:AXW is under Algo Engine buy conditions and the current pullback provides another buying opportunity.

ETFS S&P Biotech ETF (ASX Code: CURE) offers investors exposure to U.S. biotechnology companies. These companies are engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering.

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Inghams Group – FY21 Upgrade

Posted on | by Leon Hinde

Inghams Group is now under Algo Engine buy conditions following recent signals within the $3.10 to $3.30 price range.

The rally in the share price on Friday was the result of the company upgrading FY21 guidance to EBITDA 203-$213m (statutory $438-448m) and NPAT to be $96-103m.

We have ING trading on a forward yield of 5% and we expect to see mid-single-digit EPS growth over the next 2 – 3 years.

IAG – Update

Posted on | by Leon Hinde

IAG:ASX is a potential counter-trend recovery trade that’s now on our radar.

6/5 Since writing the above post IAG has continued to move higher.

31/5 Short-term investors may stick with the position as long as the price activity remains above the 10-day average.

Trade Set Up Explained

Posted on | by Leon Hinde

To help our members better understand the principles of a “trade set up” the following educational post and video has been prepared.

PP is the pivot point and SMA is the simple moving average. GICS is the ASX industry classification. These are all headings in the “Trade Table” window.

For short-term traders, the timing tool for entering a “buy” can be supported by overlaying a 3 system check.

1.       Main Algo Engine signal, (green box).

2.       PP secondary signal, (green up arrow).

3.       SMA momentum check to ensure the price is above the 10-day simple moving average, (red smoothing line over price graph).

As numbered below.

An alternative to waiting for the price to be above the 10-day moving average can be to use the stochastic and look for the black line to be turning up through the red line. This is referred to in my market commentary as the “short-term momentum indicators”.

Traders will recognise that the stochastic reacts much faster and therefore, can provide an entry confirmation closer to the recent low price, whereas, waiting for a cross above the 10-day average is a slightly slower but very effective way of not jumping the gun and ensuring the buying momentum has at least started to move in your favour.

The following video may help clarify things further and if you’re still unsure, please call our office on 1300 614 002.