ALGO Update: James Hardie

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Our ALGO engine triggered a sell signal for JHX  on December 27th at 22.40

It took several sessions for this trade to develop as the share price traded up to 22.80 on January 9th.

However, JHX shares have dropped over 6% this week and posted a low of $21.32 in early trade today.

A sharp drop in US Housing starts overnight has added to the potential downside pressure on the share price.

Single family housing starts declined by 8.2% in December to 1.19 million units. This is the largest monthly decline in 2 years and could further soften the JHX share price.

We see the next level of support at $21.00 followed by the mid-November low of $20.55.

JHX shares are traded as a CFD contract on our SAXO Go trading platform.

Call us now for more information about JHX and other names available to trade on our SAXO Go Platform.

James Hardie

 

Gold Slips Lower In Brisk NY Trade

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After posting a 5-month low of $1238 on December 12th, Gold prices rallied over $100 to peak at $1345 on January 15th.

The yellow metal traded as low as $1324 in yesterday’s New York session, which suggests the technical correction is likely to extend the downside range.

We see the next significant chart point at $1309 but wouldn’t rule out a test of the $1292 area over the near-term.

On a longer-term horizon, we are bullish on Gold and will look to buy shares in the domestic Gold producers at lower levels.

On January 4th, we flagged the potential for a bearish correction and suggested that investors take profits in Newcrest mining near the $23.30 area.

NCN reports its Quarterly Production numbers on January 30th. It’s reasonable to expect shares of NCM, as well as the smaller producers, to closely follow the spot price of Gold into these production reports.

We added NCM to our ASX Top 50 model portfolio on December 13th at $22.10. We will look to buy back into the sector as the correction in spot Gold runs its course.

Newcrest mining

 

 

 

Goldman Sachs Slips On Lower Revenue

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Goldman Sachs posted Q4 earnings of $5.69 per share, versus estimates of $4.98, on slightly higher revenue of $7.83 billion.

However, shares of the investment bank fell 2.5% to $252.00 as trading revenue in the fixed income, Forex and commodity division fell over 50% from a year ago.

With overall trading revenue falling 34% from a year ago, several analysts are doubtful that the GS share price will repeat the 6% gain from last year.

Daily charts suggest the next level of support in the $240.00 area, followed by the September lows of $205.

Goldman Sachs Group

 

ALGO Signal: Buy Bega Cheese

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Our ALGO engine triggered a buy signal in Bega Cheese at yesterday’s close at $6.80.

This signal is based on the “higher low” chart formation relative to the $6.55 low on October 5th.

BGA, who bought Vegemite a year ago, has continued its expansion plans buy acquiring the Peanut Company of Australia in December.

According to BGA management, the company’s strong balance sheet will allow it to look for other potential opportunities in the dairy and food sectors this year.

Shares of BGA gained more than 60% in 2016/17.

As many consumers steer away from diets with high sugars and carbohydrates, we believe BGA is a reasonable investment at current levels.

Initial technical price resistance will be found in the $7.50 area.

Bega Cheese

 

 

 

RIO Slips After Q4 Output Report

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Shares of Rio Tinto are down almost  1% in early trade near $81.00.

This could be a case of “buy the rumor, sell the fact” as the mining giant’s Q4 production numbers were largely as the market expected.

Earlier today, RIO announced a 3% increase in Pilburra iron ore output , producing just under 88 tons, and reaching its 2017 guidance figures of 330 tons for the year.

Since posting a low of $68.60 on December 12th, RIO shares have rallied over $13.00 in just over a month.

This is a 20% gain on what has been a surprisingly resilient Spot iron Ore market over the last 8 weeks.

RIO has been in our Top 50 Model portfolio since March 6th when it was trading at $61.50.

We will look for a pull back into the $73.00 area before adding to long positions.

Rio Tinto

 

Potential Triple Bottom In Sydney Airport

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Since posting an intra-day high of $7.60 on November 29th, shares of SYD have slid over 12% lower and hit a 10-month low of $6.63 yesterday.

A combination of higher interest rates and questions about the company’s new leadership have kept buyers on the sidelines over the last month.

However, SYD’s new chief executive Geoff Culbert has signalled that he will focus on boosting tourism in NSW when he officially takes over at the end of the month.

From a technical perspective, yesterday’s low print in the share price sets up a potential “triple bottom” pattern dating back to April of last year.

The daily price chart illustrates that when shares of SYD traded in the low $6.60 handle in April and August of last year, those level preceded a 10 to 15% rally in share price in the following months.

SYD is scheduled to release their full-year traffic numbers in two weeks and we believe investors will benefit from holding shares from these levels in their portfolios.

Sydney Airport

 

 

 

 

QAN Gaps Higher

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Shares of QAN have jumped at the ASX open and have reached a 4-week high of $5.20 in early trade.

Considering the headwind from the recent rally in crude oil prices, the stock has posted an impressive bounce off the January 10th low of $4.77.

The internal momentum indicators are pointing higher and our ALGO engine triggered a buy signal on December 8th at $5.25.

We expect to see additional gains into the March 7th dividend payment, with the next level of chart resistance near $5.60.

 

QANTAS

 

 

JP Morgan Q4 Earnings

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Shares of JP Morgan reached an all-time high of $112.80 as the firm announced adjusted Q4 EPS of $1.76 versus expectations of $1.69.

Revenue numbers were announced at $25.45 billion against the street’s forecast of $25.15 billion.

The small gain in revenue was tempered by a 34% decline in its fixed-interest revenue, which was a result of lower market volatility and tighter credit spreads.

The company returned $6.7 billion back to shareholders during Q4 with $4.7 in net share buy-backs.

With the major indexes at elevated levels, Q4 earnings could add some volatility to global equity markets.

Other key banking names reporting this week include CitiBank on Tuesday followed by Goldman Sachs and  BoA on Wednesday.

JP Morgan Chase

 

ALGO Buy Signal For Stockland Corporation

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Our ALGO engine triggered a buy signal for Stockland Corporation at $4.28.

Like several of the ASX interest-rate sensitive names, the SGP share price has dropped more 10% over the last month.

With over $16 billion in real estate assets across the country, SGP is Australia’s largest residential property developer.

We believe that the company’s diversified community development model will insulate the firm from a downturn in the higher-end property market and support a higher share price.

The technical “higher low” pattern is based on the July lows near $4.00. With a year-on-year dividend expected in the 26 cent range, this puts the stock yield at around 5.5% at current prices.

Stockland

 

 

ALGO Update: New Buy Signal In TWE

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Treasury Wine Estates has been included in our Top 50 Model Portfolio since September 2014, when the shares were priced at $4.90.

The ALGO engine has triggered several buy signals since then and we have bought and sold this stock successfully for customer accounts over the last 3 years.

We noticed that ALGO buy signals have occurred on a “higher low” pattern and after an approximate 10% pull back in the share price.

Our ALGO engine triggered a buy signal at the ASX close yesterday at $14.80.

Prior to yesterday’s signal, the most recent buy signal was on July 12th at $12.30. This signal was on a “lower high” pattern and about 10% below the June 16th high of $13.75

Similarly, yesterday’s buy signal at $14.80 pencils out to a 10% correction from the December 20th high at $16.55.

Fundamentally, we believe that TWE has a very solid growth and distribution model and new highs above $16.55 will be reached over the medium term.

Treasury Wine Estates