Amcor Is Pushing Back To The $14.00 Handle

Posted on | by Todd | Leave a Comment on Amcor Is Pushing Back To The $14.00 Handle

Shares of AMC have opened over 1% higher at $13.90 as the stock continues to recover from the May 4th spike low near $13.10.

The technical picture improved last week with internal momentum indicators now pointing higher on the daily price charts.

We see the $13.70 level as good support with an upside target in the $14.40 to $14.50 area.

AMC has been in our ASX Top 50 portfolio since July of last year, and is a good candidate for a Buy/Write strategy into the 30 cent dividend on September 4th. 

Amcor

 

 

 

Crude Oil Plunges 4% On Increased Production Plans

Posted on | by Todd | Leave a Comment on Crude Oil Plunges 4% On Increased Production Plans

The price of West Texas Intermediate (WTI) crude oil dropped 4% overnight to $67.50 on the news that Saudi Arabia and Russia are discussing plans to raise production by over 1 million barrels per day.

Ahead of a key OPEC meeting in Vienna next month, the energy ministers of Russia and Saudi Arabia met in St. Petersburg yesterday to review the terms of a global oil supply pact that has been in place for 17 months.

For the week, WTI tumbled about 4.9%, its biggest loss since early February and a sharp reversal after six weeks of gains. Additional production from US drillers also added weight to WTI prices.

We would expect to see both OSH and WPL trade lower to start the week with key support levels at $7.80 and $31.50, respectfully.

Oil Search

Woodside Petroleum

 

 

Buy The Dip In Treasury Wine Estates.

Posted on | by Todd | Leave a Comment on Buy The Dip In Treasury Wine Estates.

Shares of TWE continue to rebound off of last week’s spike low of $15.65 and have reached $16.60 in early trade today.

The panic about a glut of Australian wine in China, combined with some minor licensing issues in the region appear to be overstated.

TWE officials have reassured shareholders that they are confident in their business model in China and the company will maintain positive earnings momentum globally.

Considering that TWE has been one of the best growth stocks on the ASX over the last 3 years, and traded as high as $20.20 just over a week ago, we suggest investors look to add to holdings at current levels.

Treasury Wine Estates

 

 

 

Foretescue Is Nearing The Buy Zone

Posted on | by Todd | Leave a Comment on Foretescue Is Nearing The Buy Zone

Since posting a high of $5.03 on May 15th, shares of FMG have dropped almost 10%, reaching a low of $4.53 in early trade today.

Much of the weakness has been focused on the tepid demand for Iron Ore from China, as well as, the widening spread between the higher grade ore and the lower grades of ore.

However, as profit margins contract for Chinese steel mills, we will likely see this spread contract to the benefit of low grade producers like FMG.

FMG is the 3rd largest Iron Ore producer in the world and, as a low cost producer,  is still profitable even in the lower grade market.

The company is scheduled to pay a 25 cent dividend on September 1st, which is 5.5% of the current share price on a stand alone basis.

Fortescue

 

ALGO Update: Stay Short Woodside Petroleum

Posted on | by Todd | Leave a Comment on ALGO Update: Stay Short Woodside Petroleum

Yesterday’s investor briefing failed to inspire any fresh buying in WPL as both the technical and fundamental indicators continue to deteriorate.

Analyst’s notes from the meeting highlighted the likelihood of cost over runs with the Scarborough project, as well as the prospect for lower crude oil prices.

Our ALGO engine triggered an initial sell signal at $34.00 on May 10th and again near $34.50 on May 18th.

We see the first area of support near the gap high at $33.10 and more significant support near the $31.50 area.

Shorting WPL has been a popular trade on our SAXO Go CFD platform.

For more information about trading opportunities with CFDs, call our office for an overview.

Woodside Petroleum

ALGO Buy Signal For Northern Star Resources

Posted on | by Todd | Leave a Comment on ALGO Buy Signal For Northern Star Resources

Our ALGO engine triggered a buy signal for NST into yesterday’s ASX close at $6.18.

This “higher low”pattern is referenced to the low of $5.60 posted on February 8th.

Their most recent quarterly report showed that cost of production was stable at $1075 per ounce, which still reflects a healthy operating margin.

Further, NST expects to lift annual production to 600,000 ounces by the end of the year. The company also reported $439 million in cash and no bank debt.

The daily charts show solid support at $6.00 with a medium-term upside target of $7.10.

Northern Star Resources