ALGO Buy Signal For South 32

Posted on | by Todd

Our ALGO engine triggered a buy signal for South 32 into yesterday’s ASX close at $3.61.

The “lower high” pattern is referenced to the low posted on April 12th at $3.34. The stock has been added to our ASX Top 20 portfolio.

The share price has dropped about 8% since announcing an all-cash offer to acquire the remaining 83% of Arizona mining; a Canadian resource company which they own 17%.

The transaction does not need Canadian regulatory approval and should begin showing profits in the zinc and copper area by the September quarter.

We see solid support in the $3.40 area with an upside target in around $4.15 over the medium-term.

South 32

 

 

ALGO Update: Stay Long Northern Star Resources

Posted on | by Todd

Our ALGO engine triggered a buy signal on NST on May 24th at $6.16.

At the time, we referred to the company’s recent production forecast of 600,000 ounces of Gold for 2018 as a net positive.

However, a recent research note from UBS has upgraded their production to 690,000 ounces and set a 12-month target on the stock at $7.50.

Considering the recent weakness in Spot Gold, we expect NST to continue to trade higher as the Spot market improves. Northern Star

 

Oil prices surge 5%

Posted on | by Leon Hinde

Oil prices surged as much as 5 percent on Friday as OPEC agreed a modest increase in output to compensate for losses in production at a time of rising global demand.

WTI crude futures finished Friday’s session up $3.04, or 4.6 percent, at $68.58 a barrel.

The jump in oil prices has helped support a rally in OOO, Betashares Oil ETF.

Our Algo Engine triggered a buy signal in OOO last week at $18.10 and today the ETF is trading at $19.15.

The rally in oil is also supporting STO, OSH & BHP, which are all current holdings within our ASX50 model portfolio.

ALGO Sell Signal On GPT……3 Yield Names Go Ex-Div On Thursday

Posted on | by Todd

Our ALGO engine triggered a sell signal on GPT on June 21st at $5.36.

This “lower high” pattern is referenced to the high of $5.49 posted earlier this year on January 5th.

It’s worth noting that two other yield sensitive names, TCL and SYD also triggered ALGO sell signals last week. Furthermore, all three of these stocks will go ex-dividend on Thursday, June 28th.

As illustrated in the charts below, all three of these stocks have been in an uptrend since March.  We expect this pull back into their dividend should allow for better entry points for medium-term investors.

We see initial support for GPT at $4.70, with a stronger chart point at $4.50.

GPT

Transurban

Sydney Airport

Suncorp Is Entering The Sell Zone

Posted on | by Todd

Since posting a low of $13.30 on June 1st, shares of SUN have rallied over 11% and reached a 1-year high of $14.80 on Friday.

The selling pressure from the May 25th ACCC report on insurance rates seems to have subsided for now. However,  the scaling back of margins and other industry headwinds are still in play.

Technically, internal momentum indicators show that the share price is in overbought territory and a short-term correction is likely.

We see strong resistance in the $15.00 area and initial support just above $13.80.

Investors can trade the short side of SUN on our SAXO Go CFD platform. For more information about trading opportunities with CFDs, call our office at 1-300-614-002

Suncorp

 

ALGO Sell Signal For BOQ

Posted on | by Todd

Our ALGO engine triggered a sell signal for BOQ into yesterday’s ASX close at $10.50.

The “lower high” chart pattern is referenced to the $10.80 high posted on April 17th.

Recent chart rotation points to a medium-term low at or near $9.40. Investors looking to short BOQ can use our SAXO Go trading platform.

For more information on trading CFD products, call our office at 1-300-614-002

Bank of Queensland

Crude Oil Firms In Front Of Tonight’s OPEC Vote

Posted on | by Todd

Prices of all grades of Crude Oil pushed higher overnight as OPEC members prepare to vote on future production levels today in Vienna.

Reports from the meeting have shown no clear consensus from the cartel with the Saudi’s proposing an increase of 1 million bpd, Qatar suggesting 500,000 and Iran rejecting any increase in the daily quota.

Market reports suggest a 500,000 increase is the likely outcome, which would be moderately bearish for crude prices. The result of the vote is expected by 10:00pm, Sydney time.

Both OSH and WPL have been trading near the top-end of their recent ranges and will likely be driven by OPEC’s decision next week.

Oil Search

Woodside Petroleum

 

Amcor – ASX 20 index

Posted on | by Leon Hinde

Amcor was added to the ASX 20 index this week, replacing AMP.

As an analysis of AMC, we  feel the current share price is trading in line with fair value, based upon FY19 EPS.  Assuming growth of around 6%, places the stock on a forward yield of 4.6%

With Amcor being a beneficiary of a weaker AUD, (95% of sales outside Australia), we see limited downside risks and recommend accumulating the stock.

Amcor goes ex-div $0.30 on the 4th of September.