Take Profits In Suncorp

Posted on | by Todd | Leave a Comment on Take Profits In Suncorp

The ALGO engine gave us a buy signal on Suncorp on January 23rd at $12.92. Yesterday, the ALGO engine generated a sell signal at $13.77.

We suggest that investors who took advantage of the buy signal use this recent price increase to take profits or write covered calls above $14.00.

Technically, the $14.00 level has proved stiff resistance dating back to January of 2015.

Furthermore, the ALGO engine has generated exceptional signals for capturing the medium-term trading ranges for Suncorp.

Suncorp

 

AUD Slips Lower After Neutral CPI Data

Posted on | by Todd | Leave a Comment on AUD Slips Lower After Neutral CPI Data

Inflation in Australia remains flat, and below the lower end of the 2% to 3% RBA target band.

Many analysts were expecting an uptick in the CPI inflation reading to 2.3%, which could prompt the RBA to shift its neutral-bias to a tighter posture.

As a result, the AUD/USD fell to  a 3-month low of .7455 overnight. With the RBA meeting next week, any mention of a more benign inflation outlook would put more downside pressure on the Aussie.

Internal price indicators now point the the next support level at .7420 and a more significant target of .7365 over the near-term.

Over the last few weeks, we have been suggesting that investors look to buy the BetaShares YANK ETF to profit from a falling AUD/USD.

The YANK is an inverse ETF, with a 2.5% weighting. This means that YANK will gain 2.5% for every 1% drop in the AUD/USD.

IBM -Where is Support

Posted on | by Leon Hinde | Leave a Comment on IBM -Where is Support

IBM has approximately US$3.8 billion remaining on its current share buy-back plan. Over the last two years, the company has averaged about $4 billion per year in share repurchases .

IBM annual yield is now running at around 3.70% or equivalent to US$6.00, that’s well above US Treasuries.

Our Algo Engine generated a buy signal at around $155 back in September last year. Since then, the stock rallied to $183 before last week’s disappointing earnings result caused the stock to sell-off. The price structure looks like we may see a retest of the $150 support level in the near -term. 

Chart – IBM Div History
Charts – IBM

 

 

 

Oil Search Points Lower On Weaker Crude Prices

Posted on | by Todd | Leave a Comment on Oil Search Points Lower On Weaker Crude Prices

After falling over 7% last week, WTI Crude Oil dropped another 1% last night to trade at a four-week low of $49.05.

Concerns of oversupply in both Crude and Gasoline are dragging prices down as both products are now trading below their 30 and 50-day moving averages.

This weakness in both the technical and fundamental indicators will likely put downside pressure on the shares of Oil Search.

On April 19th, Oil Search announced a quarterly report which showed a 2% decline in total production for the March quarter, along with a 1% decline in total sales revenue.

Based on these data sets, we would expect OSH shares to trade back down to the initial support at $6.70 in the near term.

Oil Search