Crude Oil Continues To Slide Lower

Posted on | by Todd

The price of West Texas Intermediate crude oil dropped over 7% and reached a 14-month low of $50.15 in overnight trade in New York.

Yesterday’s price action extends the rout in crude oil to over 35% since posting a high of $76.90 on October 3rd.

In response, Saudi officials announced that they will attend next week’s G-20 summit in Argentina to meet with US and Russian representatives in front of the OPEC meeting on December 6th in Vienna.

Local oil names STO, OSH and WPL are all under ALGO buy signals and will stand to benefit from any indication that OPEC will cut production into 2019.

We see chart support for OSH at $7.00, STO near $5.25 and WPL in the $31.00 area.

Oil Search

Santos

Woodside Petroleum

 

 

 

 

 

 

 

 

TWE Surges Higher After Chinese On-Line Sales Decision

Posted on | by Todd

Shares of TWE have extended yesterday’s gains and are 3% higher at $14.70 in early trade today.

The catalyst for the sudden rally has been the Chinese government’s clarification of on-line sales regulations for offshore companies.

Prior to yesterday’s announcement, TWE and other online vendors were uncertain of the on-line sales protocol past December of this year.

So far this year, TWE has registered over $500 million in sales from the Asian region, led by sales to China, which make up over 20% of its total group sales.

The next chart resistance level is at $15.60 with a longer-term target near $17.90.

Treasury Wine Estates

Strong Recovery In Seek

Posted on | by Todd

Shares of SEK have extended this week’s gains and have reached a two-week high of $18.55 in early trade today.

The online job search engine has been under an ALGO buy signal since August and is part of our ASX Top 100 Model Portfolio.

We consider much of the recent downside price action technical in nature and see solid chart support in the $17.50 area.

The next key resistance level is near $19.60 with a longer-term target above $20.25.

SEEK

TWE Has Reached Oversold Territory

Posted on | by Todd

Since posting an all-time high close at $19.85 on September 3rd, the share price of TWE has dropped over 30% reaching a 12-month low of $13.40 in early trade today.

This selloff has come despite the fact that the company has maintained their guidance for EBITS growth of 25% going into 2019.

Technically, the momentum indicators have reached an oversold level last seen in January of this year, which preceded a 23% rally over the following 2 months.

Treasury Wine Estates

 

ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

EVN has been under an ALGO buy signal since August 1st at $2.85 and is part of our ASX Top 100 Model portfolio.

EVN has a market capitalization of $5.2 billion and operates mines in QLD, NSW and WA.

Combined, these mines produce about 720,000 ounces of Gold per year at an all-in sustained cost of US650 per ounce.

EVN will hold their AGM in Sydney on Thursday. Good news from that meeting could see the share price trade back above the recent high of $3.45.

Evolution Mining

 

 

Keep QANTAS On The Radar

Posted on | by Todd

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.

QANTAS

 

 

 

 

Flight Centre: Forming A Technical Base Near $46.00

Posted on | by Todd

Since posting an all-time high of $70.50 on August 20th, shares of FLT have dropped over 30% to the current level of $47.00 in early trade today.

Much of the negative sentiment has been focused on the potential loss of market share from other online booking agencies.

However, recent data shows that the investment that FLT made in its in-house online service is starting to pay dividends.

Over the last several months, online flight and hotel bookings have risen to over 20% from just over 5% earlier in the year.

At current levels, FLT is trading at 16X earnings and a 3.7% yield.

Technically, the stock is forming a “rounded bottom” pattern relative to the November 2nd low at $44.20.

We see the first level of resistance at $52.50 with a longer-term target near $57.15. Flight Centre

Local Oil Names Rebound In Front Of OPEC Meeting

Posted on | by Todd

The price of West Texas Intermediate (WTI) Crude oil surged to a 4-year high of $76.90 just over a month ago.

Since then WTI prices have plummeted almost 30% and reached a low of $54.70 this week.

It’s clear that the market overestimated the impact of Iranian sanctions, increases in Non-OPEC production and the forecasts for lower oil demand in 2019 from the EIA.

Aside from the technically oversold conditions, the OPEC producers have hinted that they will take measures to shore up crude oil prices when they meet in Vienna on December 6th.

After trading to 18-months lows earlier this week, both WPL and OSH are now under ALGO buy signals.

We consider a price reversion to higher levels a likely outcome with initial resistance for WPL at $35.05 and OSH at $8.15.

Woodside Petroleum

Oil Search

Ramsay Firms After AGM

Posted on | by Todd

Shares of RHC have been edging higher as investors respond favorably to their recent AGM on Tuesday.

With respect to their Capio AB acquisition, management continues to target overall positive core growth of up to 2% in FY 2019.

With the share price at  22X present earnings, we would have liked to seen a higher rate of expected core growth to sustain a rally from current levels.

RHC remains under an ALGO sell signal but we expect the $51.00 level to show solid support and an ALGO buy signal in the medium-term.

Ramsay Health

 

 

 

 

Medibank Firms In Front Of Today’s AGM

Posted on | by Todd

Shares of MPL have rebounded smartly since posting a two-year low of $2.62 on October 26th.

The company is holding its AGM today and we expect a favorable reaction from investors.

As announced in their FY18 results, MPL expects growth in operating profits around 25% for FY19 combined cutting $60 million of management costs over the next three years.

On balance, we see MPL as well positioned in the healthcare sector with an upside target just over $3.10

Medibank