Share tips – 10 July 2017

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Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.

This post is an extract from the newsletter dated 10 July 2017. You can access the full version of the article HERE.

 

BUY RECOMMENDATIONS

OSH
OSH broke under some trendline support in early June but the last couple of weeks has looked very bullish on the chart. It had retested the June low and then bouncing very strongly. We have also see a buy signal generated on the MACD. OSH is likely to retest resistance near $7. If it can get above that, then it could rally back up towards $7.50.

BSL
At the end of May BSl broke out of a flag formation, implying upside towards $13. The stock has since made another couple of higher highs and higher lows since the low-point in May. This further confirms the move and therefore gives us more confidence of some upside. The stock is still a buy on any dips here and it should trade up towards $15.

HOLD RECOMMENDATIONS

BOQ
We have been a buyer of BOQ during June and from an Elliott Wave perspective, it now seems to be in a third wave out of five. This means that we are in the strongest part of the move. We would therefore look to stay long in BOQ where it should strive to gets its head above $12 before encountering some resistance.

S32
Since peaking in December, the chart for S32 is now resembling that of a symmetrical triangle. It briefly dipped under some support near $2.60 but it has managed to quickly recover. It should ease higher towards resistance near $2.85 and ultimately to the high $2.90’s. The stock is looking well supported and one worth keeping an eye on as it momentum continues to pick up.

SELL RECOMMENDATIONS

SUN
The next few weeks will be crucial for SUN. It has gone to a marginally new high compared to its peak in 2014, but it then failed at that point. This usually means that the stock goes back to dip under the previous low. That is, we could see it head towards $10. It is a big call to make, but a recent example was with HSO which had a similar looking chart.

QBE
QBE had been struggling to head much higher after that initial surge at the end of last year. Recently we saw QBE once again disappoint the market, and the shares therefore were sold off. The stock has disappointed on many occasions in the last few years, and that normally results in it falling back towards $10. We can see some support closer to $10.50 which implies that there could be another 10% drop from current levels.

 

Michael Gable is managing director of Fairmont Equities.

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Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.