Geopolitics Give Gold A Lift

Posted on | by Todd | Leave a Comment on Geopolitics Give Gold A Lift

Between increased hostilities in Syria, and a US Navy carrier group off the coast of Korea, geopolitical risk lifted Gold over $20.00 in overnight trade.

After trading down to $1195.00 on March 15th, the yellow metal has moved $80.00 higher and is now trading near $1275.00.

With momentum indicators approaching over bought levels, we see scope for a pullback to the $1265.00. However, over the next few weeks, a move back to the November 2nd high of $1310.00 looks like a reasonable target.

Over the last few weeks, we have been buying both shares and call options on Newcrest Mining and the GDX Gold Miners ETF.

Chart Newcrest

Suncorp – Holding Support

Posted on | by Leon Hinde | Leave a Comment on Suncorp – Holding Support

After a series of lower high structures over the past 2 years Suncorp looks to have found a short-term consolidation range with $12.75 support and $14 resistance.

We recently took profit in our long Suncorp exposure when the stock was last trading $13.75.  The stock is now back on our watch list but a break below $12.75 will show the downtrend remains the primary driver.

Chart – SUN

 

 

 

 

 

 

BHP Gets A Boost

Posted on | by Todd | Leave a Comment on BHP Gets A Boost

Yesterday’s 5% rally in BHP left a many investors wondering what was driving the shares on a quiet Monday session.

The main reason was a  report that Elliott Advisors suggested the company could unlock shareholder value by spinning off US Petroleum and collapse of the LTD and PLC shareholdings.

The idea is that the Elliott plan would accelerate the release of value and franking credits. Of course, the $6.00 rally in Crude Oil since March 27th has also been a boost to BHP shares.

Our ALGO engine generated a buy signal  for BHP on March 13th at $23.65.

We remain cautious of the extended valuation of equities, in general, and suggest placing a stop in the $24.40 level on long positions.

Chart BHP