Bendigo and Adelaide Bank remains under Algo Engine sell conditions. The company reports their FY19 earnings on Monday 12th August and we expect a soft result, along with a cautious outlook.
Bendigo Bank and Computershare have been our two “high conviction” short trades. We’ve now covered Computershare but retain our short BEN positioning.
Wesfarmers remains under Algo Engine sell conditions and we’ll review with interest, the upcoming earnings result on the 27th of August.
We expect earnings to be flat on the same time last year, once adjusted for the demerger of Coles. Bunnings and Officeworks will provide high single-digit growth and the department store sales are likely to remain weak.
In a soft market, we may see a discounted entry-level into Wesfarmers, near the $35 price range. Remain patient!
Iluka Resources is now under Algo Engine buy conditions and we have identified the $8.00 – $8.50 price range as a likely area of support.
Watch the short-term indicators for a turn higher.
Oil Search has released an announcement stating that the PNG Cabinet has
agreed in principle, to stand behind the LNG gas agreement.
We view this as a positive and suggest that investors monitor the short-term indicators in OSH for an approaching turning point.
Woodside remains our preferred exposure within the energy names. We highlight yesterday’s Algo Engine buy signal in WPL and again, suggest investors watch the short-term indicators in WPL for a turn higher.
GPT is a high conviction buy opportunity which we’ve been highlighting on the blog.
Buying support has been steadily building from the recent $6.10 low and we’re now seeing the short-term indicators trending higher.
Bendigo and Adelaide Bank is under Algo Engine sell conditions and we see resistance building at $11.75.
Bendigo is likely to show softer revenue driven by lower net interest margins and continued competitive pressures.
Amcor is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
The stock made a recent high at $16.75 and has since corrected back to $15.50. The share price has found buying support and the short-term indicators have turned positive.
BlueScope Steel is under Algo Engine sell conditions and we see price resistance at $13.00.
Momentum is trending lower with a bearish technical structure suggesting further downside risks.
Dow Jones, S&P500 and the XJO index are all displaying Algo Engine sell conditions and the short term price action has now turned negative.
The NASDAQ remains under Algo Engine buy conditions, however, the shorter-term indicators have now also turned negative.
Further softening of conditions in the residential and civil construction markets has seen selling pressure hit Lendlease and Boral.
Both are high-quality businesses and investors should look for an opportunity to capitalize on oversold conditions.
We continue to watch the short-term momentum indicators for a turn higher.
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