ALGO Sell Signal For Woodside Petroleum

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Our ALGO engine triggered a sell signal for Woodside Petroleum into yesterday’s close at $34.31.

This “lower high” formation corresponds to the $34.98 high posted on January 15th.

WPL announced a rights issue in early February to raise $2.5 billion for further acquisitions, including the Scarborough gas field in WA. This capital raising pushed the share price to a 10-month low of $28.60.

Since then, the stock price has mirrored the recent rally in global crude oil prices and has gained close to 20% as of yesterday’s close.

However, at  current production rates, WPL only has between 12 to 15 years of oil reserves left in its portfolio.

As such, the $2.5 billion dollars it raised for acquisitions looks necessary and it’s likely that without continually spending to acquire additional reserves, the company will not be able to sustain its current level of output.

We see the first key level of support near $32.60 with a further downside target around $31.10.

Woodside Petroleum

 

CCL Loses Its Fizz After Yesterday’s AGM

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Shares of CCL are down 4% to $8.60 in early trade as yesterday’s AGM offered little definitive forward guidance about growth and earnings.

Investors were looking for an update on operational margins not only in Australia but in the ventures in PNG, ANZ and Indonesia.

There was no change to the planned 21 cent dividend for August 28th, and we see initial support for CCL in the $8.50 area.

Coca Cola

 

 

A2M Drops 15% on Weaker Full-Year Guidance

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Shares of A2 milk have opened over 15% lower to $9.80 after reporting lower guidance in their trading update and full year outlook.

The company reported that they expected total revenue near the NZ 920 million mark. This materially below the NZ 950 million the company was shooting for earlier this year.

Technically, we see scope for A2M shares to fill the price gap from February and find support near $9.00.

A2 Milk

 

 

 

 

 

 

ALGO Update: Buy The Dip In QANTAS

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It’s been about 3-weeks since QAN released its Q3 update, which showed a 7.5% increase in revenue versus the previous quarter and an increase in capacity.

Since then, the share price has reached a 10-month high of $6.45 before slipping lower on the recent spike higher in crude oil/ fuel prices.

QAN was added to our Top 50 model portfolio last July at $5.24. We suggest looking for a pullback into the $6.00 area to add to long positions.

QANTAS

 

 

 

 

FMG Firms On Expanding Export Numbers

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Pilbara Ports Authority released its April shipping figures for its ports in the Pilbara region, which delivered a total of 59.1 million tons for the month, a seven per cent year-over-year increase.

Iron ore exports from Port Hedland remained consistent, up 1 per cent from April 2017 figures to 42.6 million tons.

These better-than-expected export numbers helped lift FMG over 4% for the week to reach a 4-month high of $4.95.

FMG is part of our ASX Top 50 portfolio and we see the next near-term target in the $5.50 area.

Fortescue Metals Group

 

TAH and SGR Firm On Positive Growth Forecasts

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Shares of TAH and SGR have both firmed in early trade as several broker notes have upgraded the forward price targets of the shares.

The common theme of the research is the suggestion that investor’s negative sentiment has been overstated and that upcoming growth and profit numbers will support higher multiples.

Our ALGO engine triggered buy signals on both of these names in early April at $4.22 and $5.11 respectfully.

Internal momentum indicators are improving on both stocks and we see the next area of resistance at $5.20 for TAH, and $5.90 for SGR.

 

 

 

WFD Looks Set To Rally Into The AGM

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With less than 2-weeks until shareholders vote on the $27 billion takeover by Unibail-Rodamco,  WFD shares are trading at $9.15, 85 cents below the $10.00 per share offer.

We haven’t heard any indication that shareholders will reject the offer and see scope for a quick, short-term rally into the $9.75 area before the vote at the AGM on May 24th.

As such, we suggest investors can buy WFD shares in their cash accounts, as well as on the Saxo Go CFD platform.

Westfields

ETF Update- Take Profits In YANK

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The AUD/USD posted an intra-day high of .7810 on April 19th. Since then the Aussie has dropped over 5% and reached an 11-month low of .7410 during the NY session overnight.

And while the longer-term technical outlook remains negative, the current price action suggests that we could see a modest upside correction over the next week.

During this same period of time, the price of AUD EFT with the symbol YANK has traded from $13.10 to $14.55.

We suggest investors holding YANK should take profits at or near $14.40 and look to re-enter in the $13.90 area.

Yank

 

 

 

Stay Short BOQ and SUN

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It was announced today that BOQ and SUN will be forced to send executives to face questioning from the royal commission when hearings resume later this month.

According to Kenneth Hayne, the line of questioning will focus on lending practices to small businesses over the last 10 years, many of which were tipped into default.

Our ALGO engine triggered a sell signal in SUN on November 9th at $14.20. Since then the stock has traded as low as $12.60 and is now back in the sell-zone near $14.20.

BOQ shares pushed against resistance at the $10.50 level last week and we have a medium-term downside target of $9.60.

BOQ

Suncorp