Algo Buy Signal – Graincorp
Our Algo Engine generated a buy signal in Graincorp on Friday, following the price action forming a “higher low” pattern at $7.58
We suggest buying GNC with stop-loss below $7.55
ANZ – Algo Sell Signal
We expect the major banks to begin forming “lower high” patterns in the near-term and the Algo sell signals should be observed.
We advise holders of bank stocks to either sell covered call options and enhance the yield, or take the opportunity to rebalance portfolios from any overweight exposure to the sector.
FMG Firms On Expanding Export Numbers
Pilbara Ports Authority released its April shipping figures for its ports in the Pilbara region, which delivered a total of 59.1 million tons for the month, a seven per cent year-over-year increase.
Iron ore exports from Port Hedland remained consistent, up 1 per cent from April 2017 figures to 42.6 million tons.
These better-than-expected export numbers helped lift FMG over 4% for the week to reach a 4-month high of $4.95.
FMG is part of our ASX Top 50 portfolio and we see the next near-term target in the $5.50 area.
Fortescue Metals Group
S&P/ASX 200 Index – Resistance is approaching
The S&P/ASX 200 Index finished the week up 0.88%.
The best performing sector was the Materials sector, up 3.0% and the worst worst performer was the Telecoms sector, down 1.0%.
The XJO looks over-extended and ready for a pullback.
TAH and SGR Firm On Positive Growth Forecasts
Shares of TAH and SGR have both firmed in early trade as several broker notes have upgraded the forward price targets of the shares.
The common theme of the research is the suggestion that investor’s negative sentiment has been overstated and that upcoming growth and profit numbers will support higher multiples.
Our ALGO engine triggered buy signals on both of these names in early April at $4.22 and $5.11 respectfully.
Internal momentum indicators are improving on both stocks and we see the next area of resistance at $5.20 for TAH, and $5.90 for SGR.
WFD Looks Set To Rally Into The AGM
With less than 2-weeks until shareholders vote on the $27 billion takeover by Unibail-Rodamco, WFD shares are trading at $9.15, 85 cents below the $10.00 per share offer.
We haven’t heard any indication that shareholders will reject the offer and see scope for a quick, short-term rally into the $9.75 area before the vote at the AGM on May 24th.
As such, we suggest investors can buy WFD shares in their cash accounts, as well as on the Saxo Go CFD platform.
Westfields
Link Administration Is Approaching Oversold Levels
Link Administration has been sold off following the Federal Budget measures aimed at increasing consolidation of inactive super accounts.
Although the announcement now creates a headwind for Link from FY20, we consider the stock “oversold”.
We suggest investors can accumulate Link at or near $7.00 support.
Link
ETF Update- Take Profits In YANK
The AUD/USD posted an intra-day high of .7810 on April 19th. Since then the Aussie has dropped over 5% and reached an 11-month low of .7410 during the NY session overnight.
And while the longer-term technical outlook remains negative, the current price action suggests that we could see a modest upside correction over the next week.
During this same period of time, the price of AUD EFT with the symbol YANK has traded from $13.10 to $14.55.
We suggest investors holding YANK should take profits at or near $14.40 and look to re-enter in the $13.90 area.
Yank
Algo Update – Short Iress
Our Algo Engine triggered a recent series of short signals in IRE.
In a strong market, Iress may trade as high as $11.50, however, we feel the stock is overvalued and likely to soon resume the downtrend.
The initial downside target is currently near $10.00.
CBA – 3Q18 Top and Bottom line miss
CBA provided a 3Q18 trading update and the result was soft and reflected declining bad debt charges are no longer offsetting softer revenues and higher operating expenses.
Historically, CBA traded on an average 11% premium to the other banks and we’re now seeing that narrow down to 4%.
CBA
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