Share tips and stock recommendations for the Australian (ASX) share market – buy, hold, and sell. 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 September 2018. You can access the full version of the article HERE.
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The recent full year results has led to A2M breaking the downtrend line that was forming since February. This means that A2M is going to head higher from here and is likely to be trading at a new high very soon. Any dip is a buying opportunity.
In the last several weeks we have seen NAN break above a 2 year trading range. Volume is coming back into the stock and it is now resuming its longer term uptrend. We should continue to see it edge higher here, and we expect levels above $4 to be reached fairly soon.
DLX has spent the last 10 months forming an ascending triangle on the chart. It is testing resistance again near $8 and it appears as though the share price is getting ready to continue the uptrend. A break above $8 should see DLX rally further.
Ever since it broke out of a base formation earlier this year, the MYX chart has looked very bullish. We expect it to edge back up towards $1.30 before consolidating the great run that it has had. We would then look to their half yearly results for the next catalyst to move higher.
In early July, ABC gave us a reversal signal on the chart which means that the prior uptrend was coming to an end. It has seen been sold off heavily on a poor result. The bounce since then has been feeble and we expect ABC to head lower and retest $6.
Woolworths shares ran too hard into their full year results. With their results coming in fairly soft, we have seen a lot of selling pressure. The volume on the sell side indicates to us that the pain is not yet over and WOW should continue drifting back towards support near $26.
Michael Gable is managing director of Fairmont Equities.
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