Our Algo Engine recently triggered a sell signal in Suncorp and we highlight the resistance beginning to build at $14.10
The short-term momentum indicator is now trending lower which suggests $13.50 is a reasonable downside target.
Suncorp
Our ALGO engine triggered a buy signal in BAL into yesterday’s ASX close at $16.67.
This “higher low” formation is referenced to the $14.10 low posted on February 22nd.
The technical picture is looking somewhat soft but we see solid support at or near the $16.00 level.
Ballamy’s
ANZ & Westpac have created “lower high” formations this week and as a consequence, have now been removed from our ASX50 model portfolio.
Shares of CCL are down 4% to $8.60 in early trade as yesterday’s AGM offered little definitive forward guidance about growth and earnings.
Investors were looking for an update on operational margins not only in Australia but in the ventures in PNG, ANZ and Indonesia.
There was no change to the planned 21 cent dividend for August 28th, and we see initial support for CCL in the $8.50 area.
Coca Cola
Our Algo Engine recently generated a buy signal in Medibank at $2.80.
With the stock now making a further “higher low” formation at $3.00, we recommend buying MPL and selling December call options to enhance the yield.
December $3.20 call options are generating an additional $0.08 in premium.
Medibank goes ex-div $0.0675 on the 6th September
Medibank Private
Our Algo Engine has flagged the “lower high” formation in Bendigo Bank and with the stock facing earnings headwinds, we feel this an appropriate short trade to consider
Sell within the $11.00 – $11 .30 range.
Bendigo
Shares of A2 milk have opened over 15% lower to $9.80 after reporting lower guidance in their trading update and full year outlook.
The company reported that they expected total revenue near the NZ 920 million mark. This materially below the NZ 950 million the company was shooting for earlier this year.
Technically, we see scope for A2M shares to fill the price gap from February and find support near $9.00.
A2 Milk
Amcor provides a defensive income opportunity through buying the stock and selling a $14.26 (Euro) Dec call option.
The option generates an additional $0.42 of income, whilst remaining exposed to the $0.30 September dividend.
AMC
We continue to prefer the long side of Crown Resorts and view the stock as a suitable “buy-write” strategy for client portfolios.
$14.01 (Euro) Dec call options generate an additional $0.50 of income per share.
Crown Goes ex-dividend $0.30 on the 21st September.
Crown Resorts
BlueScope has upgraded 2H EBIT guidance to US$680m, this leads to consensus FY18 EBIT of US$1.2bn.
The upgrade driving higher profitability is due to stronger steel spreads in the US.
Bluescope was added to the ASX 100 model on the 6th February and is currently up 26%. 
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