Qantas – Algo Buy Signal

Qantas Airways is under Algo Engine buy conditions and is now a current holding in our ASX 100 model.

The switch from sell to buy conditions means the stock has automatically been added, however, traders may wish to watch the shorter-term indicators for confirmation of the change in trend.

The below graph highlights the key trend signals to watch and we forecast buying support to build near the $6.50 level.




Keep QANTAS On The Radar

Our ALGO engine triggered a sell signal on QAN on November 14th at $6.05.

Since then the stock has traded lower and reached $5.45 in early trade today.

From a longer-term perspective, we believe QAN will benefit from from the 30% drop in crude oil since October. Even if energy prices stabilize near current levels, QAN is well-placed for solid profit growth in 2019.

We expect to see investor interest accumulate in the $5.10 area and will look for an ALGO buy signal in that range.






ALGO Sell Signal For QANTAS

Our ALGO engine triggered a sell signal for QANTAS into yesterday’s ASX close at $5.90.

This “lower high”pattern is reference to the intraday high of $6.30 from September 12th.

On October 25th, we posted a report to buy QAN in the $5.40 area on the basis of lower oil costs and steady earnings growth.

At this point, it looks like oil prices are overdue for a rebound higher, which could pressure QAN back into our $5.40 to $5.35 buy zone.

As such, we suggest taking profits in QAN.  At current levels the return will be just over 8%.

We will look for another ALGO buy signal in the $5.30 area.