With Woolworths trading back below $27.50, we believe the share price now represents good investor value.
The $26.50 – $27.00 price range is an attractive buying opportunity.
On a rally back above $28.00, we recommend selling $29.00 Euro-style March call options to enhance the return.
Woolworths goes ex-dividend for $0.43 on the 1st of March.
We recommend investors add the IAA, (Asia top 50 ETF), and IZZ, (China Large-Cap ETF) to their watch lists.
There is a high probability that we’re now looking at oversold levels on both of these ETF’s and value is beginning to emerge.
IZZ China ETF
Based on the positive production numbers from their quarterly update earlier this month, we believe BHP offers value within $29 – $31 price range.
The stock is currently under an ALGO buy signal from $30.70 on September 11th. The recent price action reflects a potential “double bottom” pattern near $30.50.
BHP goes Ex-dividend for $0.70 on the 8th March.
ANZ is expected to report its FY18 result on 31 October.
The share price has now broken the June low support area and looks vulnerable to more downside pressure.
NAB is scheduled to report its FY18 result on the 1st of November. The next downside target is near the $24.00 area.
Vaneck Vestors Australian Bank ETF has been under ALGO Engine sell conditions since early July. The sell-off so far represents a 20% correction.
These three medical-related names are all under ALGO Engine buy signals.
Increasing volatility in the broader market often times forces investors to look to defensive names for safety.
CSL, SHL, and RMD are all three proven performers and represent good value at current levels.
Shares of ANN reached a 52-week low at $22.06 in early trade today.
This represents a 25.5% drop since the share price traded an intraday high at $29.65 on July 27th.
ANN is currently under ALGO Engine buy conditions from $24.80.
As illustrated in the chart below, the price has reached the value target near $22.00.
BHP is under Algo Engine buy conditions from $31.20.
Shares of the mining giant have dropped over 12% during the last three weeks and have reached a value area.
Over the next few weeks, we expect the company to make an announcement about the completion of their shale divestment and its plans for the cash.
It’s widely believed that BHP will announce a special dividend and a share buyback program.
QAN released their Q1 trading update today.
With total revenue up 6.3% and forward bookings up 8% on the same period last year, we expected the share price to have risen in early trade.
However, with widespread downside pressure across the ASX today, QAN has slipped to $5.40.
This is in the middle of our recent $5.45 to $5.35 buy zone. As such, we suggest investors add to long positions with a medium-term price target in the $7.20 range.
QANTAS
Our ALGO engine triggered a buy signal for WPL into yesterday’s ASX close at $34.30.
This “higher low” structure is referenced to the intraday low of $31.90 posted on June 5th.
The crude oil market has been extremely volatile over the last few weeks as prices rallied when Saudi Arabia threatened to cut production, only to fall sharply after the Kingdom back flipped and pledged to increase production to 10.7 million barrels per day.
We aren’t bullish crude oil, but now that WPL shares have dropped over 15% in two weeks, we see scope for near-term consolidation.
We will update WPL in a future post with more specific entry levels.
Woodside Petroleum
Betashares ETF, HACK provides diversified exposure to the global leading cyber security companies.
We covered this name in the recent “Opportunities in Review” webinar and suggested adding it to your watch list.
With the market sell-off, we’ve now seen HACK move into our forecast “value” range.
Investors with a medium term outlook can consider accumulating within the $6.00 – $6.50 range.
HACK
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