ALGO Update: Stay Long Evolution Mining

Posted on | by Todd

Our ALGO engine triggered a buy signal for EVN on August 1st at $2.83.

Since then the share price has ranged traded between $2.60 and $2.90, which is understandable since the price of Spot gold has also range traded between $1210 and $1190 during the same period.

It worth noting that in EVN’s recent three-year outlook statement, the gold miner expects production costs to remain around AUD 870.00 per ounce and production to increase to over 700,000 ounces per year.

As such, we expect EVN to trade back over the $3.50 level over a 3 to 6 month time horizon.

Evolution Mining

 

 

ALGO Update: QANTAS Is Back In The Buy Zone

Posted on | by Todd

Our ALGO engine triggered a buy signal for QAN at $6.16 on June 29th.

Since then the share price traded as high as $6.92 in late August.

However,  the recent surge in oil prices has pushed the share price down to $5.82 in early trade today.

Considering the dynamic hedging program that the company has in place, we believe the share price is nearing an oversold condition on the daily charts.

QAN is part of our ASX Top 50 portfolio and we see good value at current levels for a move back into the $7.90 area over the medium-term.

QANTAS

 

Telstra Shares Remain Firm

Posted on | by Todd

Shares of TLS continue to trade with a positive bias as market commentators remain largely split on how the NBN roll out  will impact the Telco giant’ s bottom line.

We believe investors will get a clearer picture after the AGM, scheduled for October 16th.

From a technical perspective, TLS has been building upside momentum with the next resistance level at $3.30 and solid support in the $3.05 area.

Telstra

ALGO Update: Stay Short Bank of Queensland

Posted on | by Todd

Our ALGO engine triggered a sell signal for BOQ on August 31st at $11.49.

Since then the share price has traded sideways to lower and has now broken a technical support level near $11.05.

BOQ will hold its AGM next Thursday, October 4th.

In addition to warnings about funding pressures and contracting margins, we also expect the bank to announce a $30 million restructuring charge during the meeting.

On balance, the combination of technical and fundamental weakness points to a return to the June lows near $9.60.

Bank of Queensland

ALGO Signal To Exit Japan ETF (HJPN)

Posted on | by Todd

Our ALGO engine triggered a sell signal for the Betashare Japan ETF (symbol HJPN) into Friday’s ASX close at $13.69.

This “lower high” pattern is referenced to the intra-day high of $13.88 posted on June 12th.

This ETF  is a unit trust made up of 10 of Japan’s largest companies including Honda, Sumitomo financial and Canon Inc.

Investors who held HJPN for the duration of the trade would have realized an 18.65% return including dividends.

Japan ETF (HJPN)

 

 

ALGO Sell Signal For Rio Tinto

Posted on | by Todd

Our ALGO engine triggered a sell signal for RIO Tinto into yesterday’s ASX close at $79.50.

This “lower high” pattern is referenced to the intra-day high of $82.20 posted on August 1st.

RIO has also been removed from our ASX Top 100 model portfolio after achieving a 29.50% gain (and over $5.00 in dividends) over the last 569 days.

Since trading as low as $69.40 on September 6th, RIO’s share price has rallied over 15% in less than two weeks reaching a high of $80.00 on Friday.

We believe two of the reasons for the recent investor interest are the stabilization of the raw materials market and the announcement of RIO’s massive share buy back scheme.

According to a company release, RIO plans off-market purchases of up to 41 million of its ASX listed shares as well as on-market purchases of its UK listed shares.

In total, the plan could equal over $4.5 billion in capital returned to share holders.

As such, we feel the strong fundamentals driving the recent surge in the stock price will result in a near-term consolidation, as opposed to a change in trend to the downside.

Rio Tinto

 

 

ALGO UPDATE: Stay Long Sandfire Resources

Posted on | by Todd

Our ALGO engine gave a buy signal for SFR on September 12th at $6.75.

Since then the stock has lifted over 8% and reached a high of $7.32 in early trade today.

Over the same time, the price of spot copper has stabilized in the $2.70 area after dipping as low as $2.55 on August 15th.

As the technical picture improves for both Copper and Gold, we see an initial upside target of $8.80 for SFR over the medium-term.

Sandfire Resources

ALGO Buy Signal For ASX Limited

Posted on | by Todd

Our ALGO engine triggered a buy signal for ASX Ltd into yesterday’s close at $62.57.

This “higher low” pattern is referenced to the intra-day low of $61.90 posted on June 14th.

Since reaching an all-time high of $68.90 on August 17th, the share price has slipped close to 8% lower.

We see solid technical support for the stock at $62.00 and initial chart resistance in the $66.20 area.

ASX Limited

 

TWE Is Back In The Buy Zone

Posted on | by Todd

Since posting a high of $19.90 on September 4th, shares of TWE have slipped over 12% lower and hit $17.40 in early trade today.

Our ALGO engine triggered a buy signal for TWE on Tuesday at $17.60.

This “higher low” pattern is referenced to the $16.50 low posted on May 30th.

According to a directors interest notice last week, the company Chairman, Paul Rayner, bought 18,700 shares at around $18.70, which lifted his personal interest to over 260,000 shares.

It’s our base case that TWE can continue to build on the strong FY 2018 results and the share price represents good value at current levels.

Treasury Wine

 

 

ALGO Buy Signal For Bega Cheese

Posted on | by Todd

Our ALGO engine triggered a buy signal for Bega Cheese into yesterday’s ASX close at $6.85.

This “lower high” pattern is referenced to the intra-day low of $6.47 posted on April 18th.

Shares of BGA have dropped over 10% since the company announced an institutional share placement to raise $200 million to reduce its debt and initiate a share buyback plan.

The share price looks technically oversold at current levels and we see solid investor support in the $6.50 area.

Bega Cheese