ALGO Sell Signal For Rio Tinto

Posted on | by Todd

Our ALGO engine triggered a sell signal for RIO Tinto into yesterday’s ASX close at $79.50.

This “lower high” pattern is referenced to the intra-day high of $82.20 posted on August 1st.

RIO has also been removed from our ASX Top 100 model portfolio after achieving a 29.50% gain (and over $5.00 in dividends) over the last 569 days.

Since trading as low as $69.40 on September 6th, RIO’s share price has rallied over 15% in less than two weeks reaching a high of $80.00 on Friday.

We believe two of the reasons for the recent investor interest are the stabilization of the raw materials market and the announcement of RIO’s massive share buy back scheme.

According to a company release, RIO plans off-market purchases of up to 41 million of its ASX listed shares as well as on-market purchases of its UK listed shares.

In total, the plan could equal over $4.5 billion in capital returned to share holders.

As such, we feel the strong fundamentals driving the recent surge in the stock price will result in a near-term consolidation, as opposed to a change in trend to the downside.

Rio Tinto

 

 

ALGO UPDATE: Stay Long Sandfire Resources

Posted on | by Todd

Our ALGO engine gave a buy signal for SFR on September 12th at $6.75.

Since then the stock has lifted over 8% and reached a high of $7.32 in early trade today.

Over the same time, the price of spot copper has stabilized in the $2.70 area after dipping as low as $2.55 on August 15th.

As the technical picture improves for both Copper and Gold, we see an initial upside target of $8.80 for SFR over the medium-term.

Sandfire Resources

ALGO Buy Signal For ASX Limited

Posted on | by Todd

Our ALGO engine triggered a buy signal for ASX Ltd into yesterday’s close at $62.57.

This “higher low” pattern is referenced to the intra-day low of $61.90 posted on June 14th.

Since reaching an all-time high of $68.90 on August 17th, the share price has slipped close to 8% lower.

We see solid technical support for the stock at $62.00 and initial chart resistance in the $66.20 area.

ASX Limited

 

TWE Is Back In The Buy Zone

Posted on | by Todd

Since posting a high of $19.90 on September 4th, shares of TWE have slipped over 12% lower and hit $17.40 in early trade today.

Our ALGO engine triggered a buy signal for TWE on Tuesday at $17.60.

This “higher low” pattern is referenced to the $16.50 low posted on May 30th.

According to a directors interest notice last week, the company Chairman, Paul Rayner, bought 18,700 shares at around $18.70, which lifted his personal interest to over 260,000 shares.

It’s our base case that TWE can continue to build on the strong FY 2018 results and the share price represents good value at current levels.

Treasury Wine

 

 

ALGO Buy Signal For Bega Cheese

Posted on | by Todd

Our ALGO engine triggered a buy signal for Bega Cheese into yesterday’s ASX close at $6.85.

This “lower high” pattern is referenced to the intra-day low of $6.47 posted on April 18th.

Shares of BGA have dropped over 10% since the company announced an institutional share placement to raise $200 million to reduce its debt and initiate a share buyback plan.

The share price looks technically oversold at current levels and we see solid investor support in the $6.50 area.

Bega Cheese

 

 

 

Stay Long Tabcorp

Posted on | by Todd

Shares of TAH have been rising steadily since dipping to $4.50 on August 7th.

Recent comments from management in front of their AGM reflect confidence that the company will deliver stronger earnings, dividends and synergies from the Tatts acquisition.

Technically, we see a price inflection point at the $5.00 level which could extend up to the February highs near $5.25.

Tabcorp

 

 

 

 

 

 

ALGO Update: Accumulate Woolies At Current Levels

Posted on | by Todd

Our ALGO engine triggered a buy signal for WOW on Monday at $27.45.

This “higher low” pattern is referenced to the $26.40 low posted on April 20th.

WOW shares have been drifting lower for the last two months and are now consolidating in the $27.30 to $27.60 range since going ex-dividend for 60 cents last week.

With the current share price trading at 22x earnings, we see the stock as good value above the $27.00 level.

WOW was added to our ASX Top 20 model portfolio on August 22nd. Our medium-term target is $29.40

Woolworths

 

 

 

 

 

Telecom Merger Helps Telstra

Posted on | by Todd

Since slumping to a 7-year low of $2.60 on June 28th, shares of Telstra have risen over 20% during the last two months and reached $3.26 earlier today.

Part of the improvement in the domestic Telecom sector has stemmed from the merger of TPG and HTA, and the increase in scale for all the local providers.

In addition, we see TLS having a distinct advantage over its rivals with the 5-G network expanding revenue streams beyond traditional voice and data services.

As such, we believe the share price will continue to trend higher and the current dividend ratio is sustainable. The next technical chart level is just above $3.60.

Telstra

 

 

 

 

 

Amcor Is Approaching Oversold Levels

Posted on | by Todd

Our ALGO engine triggered a sell signal for AMC on August 2nd at $15.25.

The share price reached a 3-month low of $13.62 in early trade today and is entering into an oversold chart pattern.

Despite the recent uncertainty of trade friction between the US and China, we believe the outlook for the paper and packaging sector will remain stable and input costs will continue to drift lower.

We see technical support in the $13.35 area and would not be surprised to see a ALGO buy signal above $13.00.

Amcor

 

 

 

 

 

IEA Announces A Rise In Crude Production

Posted on | by Todd

Recent hurricane activity in the US has overshadowed a report from the International Energy Agency which showed daily Crude Oil production from OPEC climbed by 420,000 barrels for the month of August to just over 32 million barrels per day.

That increase in output has more than made up for the potential decline in Iranian production due to US economic sanctions.

With this in mind, we see topping patterns in both WPL and OSH on the daily charts.

We don’t have recent signals on either stock at the moment.

However, we would expect the recent increase in production, coupled with the risk of lower demand, will put downside pressure on both of these names over the near term.

Woodside Petroleum

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