We recommend buying WPL as a new “higher low” formation builds at $31.50.
The last Algo Engine buy signal was triggered back in June, with WPL bottoming-out in September at $28. The recent retracement and higher low at $30.60 now looks to be a solid base.
Over the last two weeks, the price of Gold has made two attempts at breaking through the $1300.00 mark.
On both occasions, the yellow metal dropped back to find support just above the $1270.00 level.
This technical pattern is known as a “pennant” formation and is a continuation pattern. In this case, the break out points for range extension are $1308 and $1263.
Fundamentally, the case for buying Gold remains compelling. The surge in volatility across global stock markets combined with heightened geopolitical uncertainty supports the logic for owning Gold or Gold mining shares.
We expect the price of Gold to break through the $1300 level over the near-term. Our preferred Gold mining shares are NCM, EVN, SBM and SAR.
Investors looking to profit from a rally in Gold can either buy these shares outright, or buy their CFDs listed on our SAXO Go platform.
Spot Gold
Newcrest Mining
Santa Barbara Mining
Evolution Mining
In December, we are conducting the following webinars. Please register your interest by using the register link below. We will email you, one hour before each Webinar begins, with the link to join in.
Join us in this webinar as we recap on the major trends of 2017 and explore which ones will continue in 2018 and which ones have come to an end. Find out what stocks to add and what stocks to remove from your portfolio, before it’s too late.
Don’t miss the opportunity to build your understanding of the big trends impacting equities and, more importantly, which stocks should and shouldn’t be in your portfolio heading into 2018.
Join us in this webinar as we explain the new features and best ways to navigate through the research, charts, algo engine & new model portfolio features. You’ll also be invited to a 30-day free trial of the technology.
Don’t miss the opportunity to build your understanding on how to benefit from our new technology, as your window to the market.
Join us in this webinar as we look at shorter-term trading strategies for both long & short positions & we review how we utilise the Saxo Trader Go platform to take advantage of trading opportunities within the ASX top 50 stocks. We explore the features, how to place and manage orders and look at how short term traders can use the Investor Signals’ research to trade both long and short signals using CFD’s.
Don’t miss the opportunity to learn how we apply proven techniques to shorter term trading on ASX 50 CFD’s.
ALL delivered $543m, (37% increase), in underlying profit for FY17.
A good result was offset by a negative response to their announced acquisition of Big Fish Games. The acquisition of Big Fish is the second deal this year where Aristocrat is expanding into social gaming.
FY18 is forecast to deliver a further 20% growth with net profit of $650m, EPS $1.05, DPS $0.42 placing the stock on a forward yield of 1.9%.
We hold ALL in our ASX 50 model portfolio, following the Algo Engine buy signal triggered in July at $20.25.
China factory activity expanded at a quicker pace in November, with the official manufacturing PMI coming in at 51.8, while the services PMI accelerated to 54.8.
Chinese GDP grow close to 7% in the 9 months to September.
iShares China Large Cap ETF has rallied from $40 to $62 in the last 12 months, we now look for the next Algo Engine buy signal.
Shares of the “big-4” banks are trading sharply lower as the Government announced a $75 million Banking Royal Commission before the ASX open today.
When making the announcement, PM Turnbull said it was a regrettable but necessary action.
The terms of the inquiry are wider than the market expected and will include the entire financial services sector. The final report will be due in February 2019.
We have been giving the banks a wide berth recently due to likely headwinds from slower loan growth and falling profit guidance. We’ll continue to watch the ALGO engine for trade updates and future levels to enter the market.
MVB Aussie Banking ETF
QBE, SUN and CBA are recent examples of the “lower high” formation being identified by the Algo Engine.
SEEK provided a trading update at its AGM yesterday, upping its guidance for
EBITDA growth to 13% and reaffirming NPAT guidance of $220-230m.
FY18 Revenue $1.3b, EBIT $340m, EPS $0.63, DPS $0.44, placing the stock on a forward yield of 2.4%.
Our Algo Engine last triggered a buy signal back in June, when SEEK was trading at $16.40. A pullback to $17 will provide a lower risk entry level.
SEEK
Our ALGO engine triggered a sell signal in BXB on yesterday’s ASX close at $10.19.
This was the highest closing price since June 26th, but still within the technical “lower high” pattern based on the May 29th high trade at $10.70.
We consider the current price level to be near the top of the counter trend range and ready to trade lower.
Fundamentally, BXB is trading at 19X earnings and a 3.1% yield based on FY18 earnings
For those CFD traders using our SAXO Go platform, we see the next significant price support level near the early November lows at $9.40.
Brambles
BHP’s medium-term cost guidance for iron-ore and coal is better than expected and will help to underpin EPS targets into FY18 and FY19.
FY18 revenue will be up slightly to $40b, EBIT $13b with reported profit in FY18 forecast to increase 10% to $6.4b.
Assuming dividends per share of $0.80, BHP is placed on a forward yield of 4%.
We see upside in BHP’s share price to $30 and suggest selling a March $29.50 call option to enhance the yield.
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