Tag: ASX:BOQ

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

Shares of BoQ are trading lower for the third consecutive day and are now pressing initial support at $11.00 in early trade.

Our ALGO engine triggered a sell signal on August 28th at $11.28. The “lower high” pattern was referenced to the intra-day high of $12.00 posted on March 12th.

BoQ has been the focus of several recent downgrades ranging from “under-perform” to an outright “sell.”

The main concerns for the profitability of bank going forward are the weakening credit growth and higher offshore funding costs.

We see the next area of support near the $10.70 level, followed by the $9.60 low posted in mid-June.

Bank of Queensland

BOQ has open the door for a full round of out-of-cycle rate hikes as the bank lifted its variable home loan rate and line of credit for both investors and owner-occupier loans.

Blaming rising funding costs, BOQ will raise both credit structures by 15 basis points effective July 2nd. 

With the RBA standing firm on rates until at least Q3 2019, we don’t expect BOQ to be the only  bank to snug rates higher on an out-of-cycle basis.

Our ALGO engine triggered a sell signal on BOQ on June 21st at $10.50. We maintain our negative outlook on the stock with a medium-term target near $9.40.

Bank of Queensland

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

Our Algo Engine generated a sell signal back in February when BOQ was trading at $13.00. The stock closed yesterday at $10.66.

Bank  of Queensland 1H18 earnings missed consensus by around 5%. Net profit after tax came in at $182 million and would have been much lower, if it was not for lower than expected bad and doubtful debt provisioning.

The result highlights quality concerns over underlying profitability.

With the stock trading on a 7%+ fully franked dividend, sell-offs will be met with some buying interest.

However, earnings headwinds and a down-turn in the credit cycle, suggests future “short” or sell signals from our Algo Engine are the preferred directional trades.

BoQ

Our ALGO engine triggered a sell signal for BOQ at $12.74 on February 27th.

The technical “lower high” price structure is related to the November 30th high at $13.20 and the November 1st high at $13.40.

We expected the $13.10 resistance level to hold before reverting back below the $12.00 handle.

CFD traders who took this trade can look to cover short positions in the $11.90/95 area.

We maintain our short bias on the banking sector in general, but consider BOQ mildly over-sold.

Bank of Queensland

Our ALGO engine triggered a sell signal for BOQ into Friday’s ASX close at $12.74.

The technical “lower high” price structure is related to the November 30th high at $13.20 and the November 1st high at $13.40.

BOQ raised $350 million from its Capital Notes offer in late 2017 after strong investor demand for the offer saw it increase from $325 million.

This corporate action saw the share prices post a mild rally before sliding down to $11.72 on February 8th.

We expect the next resistance level near $12.90 before trading back below $12.00 over the next few weeks.

Bank of Queensland