Gold Update: Looking For Higher Prices

Posted on | by Todd | Leave a Comment on Gold Update: Looking For Higher Prices

On June 8th, we posted a report on Gold just as the spot price was about to break back above $1300.00 for the first time since last November.

Instead, the yellow metal failed at resistance and has rotated lower finding support at the $1240.00 level.

In that same report, we commented on how the share price of NCM was lagging behind the spot price due to supply concerns from the idle Cadia mine in NSW.

At this point, the spot Gold price and the share price of NCM seem more in sync with both slowly moving back above key resistance levels.

With local stock valuations still very high, we suggest investors look to increase exposure to Gold. We recently took profits in EVN at $2.50 and will look to re-position over the near-term.

We also suggest investors can look to buy the BetaShare Gold ETF with the symbol: QAU.

Newcrest

Evolution

BetaShare Gold ETF: QAU

Take Profit – Ramsey Healthcare

Posted on | by Leon Hinde | Leave a Comment on Take Profit – Ramsey Healthcare

After buying Ramsey Healthcare on the recent pullback to $68.50, we now look to take profit at today’s price levels.

Within the healthcare space, we continue to like SHL, RMD, CSL and Ramsey Healthcare. Although, they’re starting to look a little expensive from a PE perspective.

Trimming profits with a view to buying back in on a pullback makes sense, or selling tight covered call options at current price levels.

Chart – RHCASX:RHC

 

Downside Risk For MQG

Posted on | by Todd | Leave a Comment on Downside Risk For MQG

Shares of MQG lost over 2% for the week as internal momentum indicators are now rolling over into negative territory.

In addition to the negative technical picture, MQG faces a major class action suit over allegations some of its investment advisers artificially inflated the price of a small mining company before a sudden collapse wiped out many of its investors.

According to an article in the Sydney Morning Herald, the investment bank’s brokers are accused of deliberately “ramping” stock in Cleveland Mining Group: a Brazilian iron-ore mine project with a potential value of $34 billion that turned out to be a “worthless patch of jungle.”

Initial price support can be found at the June 8th low of $86.05. A break of that level could see downside range extension to the February 9th low of $82.30.

Macquarie Group (MQG)

ETF Update: Buy OOO For A Bounce In Crude Oil

Posted on | by Todd | Leave a Comment on ETF Update: Buy OOO For A Bounce In Crude Oil

Over the last 4 weeks, the price of WTI Crude Oil has dropped over 20% from $52.00 to just under $42.00.

Increased shale production, more supply from Non-Opec nations and the unwinding of large speculative long positions have all factored into the recent price slide.

However, from a technical perspective, we consider the price risks asymmetrically skewed to the upside from current levels. The likelihood of some sort of weather or politically-base supply disruption should also be taken into account.

For investors looking for a pure-play in a rebound in Crude Oil prices, we suggest looking at the BetaShare ETF with the symbol: OOO. 

Shares of OOO are currently trading at $12.20.

On June 8th, with WTI trading at $46.00 per barrel, shares of OOO traded as high as $14.30. We believe this is a reasonable trade dynamic for a a short-term rebound in the WTI Crude Oil price.

BetaShare ETF: OOO

 

Algo Buy Signal – Origin

Posted on | by Leon Hinde | Leave a Comment on Algo Buy Signal – Origin

Our Algo Engine has flagged a second buy signal within the uptrend on Origin that started back in January 2016.

The first “buy on the dip” signal occurred  in March 2017 at $6.25 and now a new Algo Engine buy signal has been triggered at $6.90.

WPL, OSH and ORG are all likely to find support and trade higher from the current price levels.

Chart – ORG

 

 

Chart Watch – Goldman Sachs

Posted on | by Leon Hinde | Leave a Comment on Chart Watch – Goldman Sachs

We’re watching the rebound in US financials as a leading indicator for momentum in the Australian banking shares.

The chart below of Goldman Sachs shows the minor bounce that’s recently taken place. However, it looks like selling pressure is now building and the short term momentum indicators have turned lower.

Unless, Goldman Sachs can trade back up through the $230 resistance, it looks like the rebound higher, could now be completed.

Chart – Goldman Sachs

 

QBE – $1billion Share Buy-Back

Posted on | by Leon Hinde | Leave a Comment on QBE – $1billion Share Buy-Back

On account of heightened claims activity in QBE’s Emerging Markets (EM) division, QBE has downgraded its FY17 guidance.

However, we remain optimistic regarding the QBE turn-around and feel the cycle is bottoming for QBE and the outlook is encouraging.

With the stock trading 10x forward earnings and 6% yield, along with a 3-year A$1bn buy back, which was announced in February, QBE is worth adding to your watchlist.

QBE is likely to commence their share buy-back program by late August 2017 and buying ahead of this time should be rewarded with higher prices into 2018.

Chart – QBE

 

 

Recent Signals – WOW & SOL

Posted on | by Leon Hinde | Leave a Comment on Recent Signals – WOW & SOL

Our Algo Engine triggered buy signals in both WOW and SOL; both opportunities are worth further consideration. Buying support is likely to increase at or near the current entry levels.

Reminder: We now have a new tutorial video in the help menu which explains the navigation of the watch-list feature, this includes reviewing the recent algo signals and customising your own watch-list.

If you need more help, please call our dealing/help desk on 1300 614 002

Chart – WOW
Chart – SOL