Our ALGO engine triggered a sell signal for BOQ into yesterday’s ASX close at $10.50.
The “lower high” chart pattern is referenced to the $10.80 high posted on April 17th.
Recent chart rotation points to a medium-term low at or near $9.40. Investors looking to short BOQ can use our SAXO Go trading platform.
For more information on trading CFD products, call our office at 1-300-614-002
Bank of Queensland
Prices of all grades of Crude Oil pushed higher overnight as OPEC members prepare to vote on future production levels today in Vienna.
Reports from the meeting have shown no clear consensus from the cartel with the Saudi’s proposing an increase of 1 million bpd, Qatar suggesting 500,000 and Iran rejecting any increase in the daily quota.
Market reports suggest a 500,000 increase is the likely outcome, which would be moderately bearish for crude prices. The result of the vote is expected by 10:00pm, Sydney time.
Both OSH and WPL have been trading near the top-end of their recent ranges and will likely be driven by OPEC’s decision next week.
Oil Search
Woodside Petroleum
Despite the announcement that both WA and VIC will raise race field fees, the share price of TAH continues to build upside support from the $4.50 area.
Several broker notes have suggested that even though the increased fees could lower net profits by close to $5 million, the consensus price target remains in the $5.20 to $5.50 range.
Our ALGO engine triggered a buy signal on TAH at $4.22 on April 4th and the stock was included in our Top 100 Portfolio in early February.
TAH will pay a 12.5 cent dividend on August 11th and we suggest accumulating shares at these levels.
Tabcorp
The domestic banks have rebounded significantly over the last two weeks with ANZ and CBA both rising over 10% from their lows in early June.
However, this optimism may be short lived as some of the world’s most “Systemically Important Financial Institutions” (SIFI Index) have been trading sharply lower over the last three months.
This banking index includes JP Morgan, Barclay’s and Commerzbank; banks that provide funding to domestic banks in Australia.
Aussie banks are heavily depended on USD-funding from these banks (and others) and will likely feel the pinch on earnings as US rates trend higher and USD liquidity becomes more expensive.
We have been cautious of the local banks and suggest investors look to use this recent rally to off-load long exposure in the banking sector.
SIFI Index
CBA
ANZ
Our ALGO engine triggered a sell signal on CTX into yesterday’s ASX close at $31.15. The “lower high” structure is referenced to the high of $32.02 posted on April 20th.
Since announcing stronger profit guidance numbers on June 12th, shares of CTX have risen over 8%.
Internal momentum indicators are now approaching the overbought area near $32.00 and a near-term correction lower looks to be the most likely direction.
We see strong resistance in the $32.25 area and initial support at $30.40.
CalTex
Our ALGO engine triggered a sell signal on both SYD and TCL into yesterday’s ASX close at $7.47 and $12.20, respectfully.
We suggest either taking profits on the stock or using the option strategy outlined below.
With both of these names going ex-dividend on June 28th, we suggest selling a call option above the market to increase cash flow and enhance the return.
For TCL, we are looking to sell the October $12.50 call for around 24 cents and collect the 28 cent dividend.
For SYD, we will sell the October $7.75 call for around 12 cents, which will keep investors in the stock to collect the 18.5 cent dividend.
Transurban
Sydney Airport
After trading as high as $5.45 on May 28th, shares of Star Entertainment Group slipped over 13% to reach a 1-year low of $4.73 last week.
However, several broker notes have recently rated the stock as an “outperform” citing increased revenue during the month of May and targeted the share price to rise to $6.25 over the medium-term.
Our ALGO engine triggered a buy signal in SGR on April 12th at $5.05. We consider buying SGR below $5.00 a good value for client portfolios.
Star Entertainment Group
After trading as high as $10.50 on May 18th, shares of QBE have dropped over 10% and reached $9.25 last week.
However, the share price got a lift on Thursday after UK Ratings agency, A.M. Best affirmed its Financial Strength Rating to A, and its Long-Term rating to a+.
At Friday’s closing price of $9.41, QBE is trading at a P/E of 13 and the 22 cent dividend on August 24th places it on a yield of 5.10%.
Our ALGO engine triggered a sell signal on QBE at $10.30 on May 3rd. We expect that signal to reverse soon and will advise on entry levels in a future posting.
QBE
Since posting an intra-day low of $2.74 on Wednesday, shares of Telstra have risen over 8% and are pushing against $3.00 in early trade today.
We cite two fundamental catalysts for the renewed buying interest in the telco giant.
First, the acquisition of Time Warner by ATT in the US has supported the idea of global telecommunication firms increasing revenue by diversifying into media and entertainment.
Second, TLS will be hosting its highly anticipated investor day next Wednesday, June 20th.
Shares of Clydesdale and Yorkshire bank continue to firm as the market assesses the takeover of Virgin Money as a net positive for the UK-based lender.
Under the terms of the current proposal, CYB will acquire 100% of Virgin Money by issuing 1.21 new shares in exchange for each share in Virgin.
The takeover board has extended the deadline for CYB’s decision to June 18th for Virgin’s 6 million personal and business customers.
Will believe that CYB will move forward with the takeover. As such, the cost synergies via the rationalization of operations and the reduction in IT spending will add value and lift the share price.
Our ALGO engine triggered a buy signal at $4.40 back in July of last year. We suggest buying CYB at current levels with an initial upside target of $6.00 and solid support at $5.15.
CYB
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