ALGO Update: Strong Start For Treasury Wines

Posted on | by Todd | Leave a Comment on ALGO Update: Strong Start For Treasury Wines

Shares of TWE have started the week 2.5% higher today and have traded back above the $16.00 level.

Our ALGO engine triggered a buy signal at $14.80 on January 11th.

Several wire firms included TWE on recent buy lists, citing the company’s solid sales and growth projections into 2018.

In addition,  we expect TWE will benefit from the  lower tax rate for their USA-based business.

Based on the daily charts, we expect the next area of resistance near the previous all-time highs of $16.55.


Treasury Wine Estates

XJO Update: Miners Lead The Index Lower

Posted on | by Todd | Leave a Comment on XJO Update: Miners Lead The Index Lower

The ASX XJO Index fell 1.1% for the week and traded below the 6000 level for the first time this year.

Mining stocks and the major banks led the downside following weakness in commodity prices.

The ASX Gold index dropped four sessions in a row and lost 1.3% on Friday to close at 4874.60.

Iron Ore prices posted their first weekly loss in over a month, which pressured shares of mining giants BHP and RIO Tinto lower for the week.

Shares of RIO fell 4.6% to $78.00 while  BHP slipped 3.7% to end the week at $30.70

Internal momentum indicators are looking fairly neutral on the daily charts, which suggest the index could see range trading next week between 6070 and 5985.

XJO Index

 

ALGO Update: James Hardie

Posted on | by Todd | Leave a Comment on ALGO Update: James Hardie

Our ALGO engine triggered a sell signal for JHX  on December 27th at 22.40

It took several sessions for this trade to develop as the share price traded up to 22.80 on January 9th.

However, JHX shares have dropped over 6% this week and posted a low of $21.32 in early trade today.

A sharp drop in US Housing starts overnight has added to the potential downside pressure on the share price.

Single family housing starts declined by 8.2% in December to 1.19 million units. This is the largest monthly decline in 2 years and could further soften the JHX share price.

We see the next level of support at $21.00 followed by the mid-November low of $20.55.

JHX shares are traded as a CFD contract on our SAXO Go trading platform.

Call us now for more information about JHX and other names available to trade on our SAXO Go Platform.

James Hardie

 

Gold Slips Lower In Brisk NY Trade

Posted on | by Todd | Leave a Comment on Gold Slips Lower In Brisk NY Trade

After posting a 5-month low of $1238 on December 12th, Gold prices rallied over $100 to peak at $1345 on January 15th.

The yellow metal traded as low as $1324 in yesterday’s New York session, which suggests the technical correction is likely to extend the downside range.

We see the next significant chart point at $1309 but wouldn’t rule out a test of the $1292 area over the near-term.

On a longer-term horizon, we are bullish on Gold and will look to buy shares in the domestic Gold producers at lower levels.

On January 4th, we flagged the potential for a bearish correction and suggested that investors take profits in Newcrest mining near the $23.30 area.

NCN reports its Quarterly Production numbers on January 30th. It’s reasonable to expect shares of NCM, as well as the smaller producers, to closely follow the spot price of Gold into these production reports.

We added NCM to our ASX Top 50 model portfolio on December 13th at $22.10. We will look to buy back into the sector as the correction in spot Gold runs its course.

Newcrest mining

 

 

 

Goldman Sachs Slips On Lower Revenue

Posted on | by Todd | Leave a Comment on Goldman Sachs Slips On Lower Revenue

Goldman Sachs posted Q4 earnings of $5.69 per share, versus estimates of $4.98, on slightly higher revenue of $7.83 billion.

However, shares of the investment bank fell 2.5% to $252.00 as trading revenue in the fixed income, Forex and commodity division fell over 50% from a year ago.

With overall trading revenue falling 34% from a year ago, several analysts are doubtful that the GS share price will repeat the 6% gain from last year.

Daily charts suggest the next level of support in the $240.00 area, followed by the September lows of $205.

Goldman Sachs Group

 

Medibank – Buy-Write Generating 10% Cash flow

Posted on | by Leon Hinde | Leave a Comment on Medibank – Buy-Write Generating 10% Cash flow

Medibank remains in our ASX50 model portfolio from lower levels and we continue to view the stock as a worthwhile buy-write strategy at the current “higher low” price formation.

MPL pays $0.053 dividend on the the 7th of March and when complimented with a $3.30 June call option, (credit  $0.11), the strategy delivers 10%+ in annualised cash flow.

MPL reports 1H18 earnings on the 16th of February and the market is looking for 3 – 5% EPS growth and NPAT of $230 million.

 

Algo Update – Buy AGL

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Buy AGL

Our Algo Engine triggered a buy signal on the 23rd of August in AGL at $22.64.

Following this, AGL rallied to $26.50 before retracing back to the current higher low at $23.70.

AGL remains in our ASX50 model portfolio and a positive earnings result when the company updates the market on the 8th of February, should provide renewed buying support.

AGL pays a $0.41 dividend on the 23rd of February.