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 thebull newsletter dated 11 December 2017. You can access the full version of the article HERE.
ASX Buy Recommendations
It looks like GUD has broken out of a flag formation on the chart. This is very positive and tells us that GUD is getting ready to resume the upwards move. We would be targeting levels above $13 before reassessing.
The broke above some key resistance last month on the back of a well received 3rd quarter update from the Company. Valuation targets are near $9 but our charting analysis suggests that WFD could rally towards resistance at $9.40.
ASX Hold Recommendations
We have been bullish on ORA for a while and now the stock is consolidating the great run that it had during the prior few months. This flag formation is sitting on top of the September high and a push through $3.40 would indicate a resumption of the uptrend.
After hitting our initial targets above $33, WPL has now eased back to consolidate the move. Encouragingly, it has bounced strongly from the $30 level again. WPL should now push through $33 and attempt a break of $34.
ASX Sell Recommendations
SEK was sold down a couple of weeks ago after their AGM . The weekly candlestick chart shows the formation of a “bearish engulfing pattern”, which is a reversal signal. SEK should come back into the range here and we would be expecting to see levels closer to $16.
We’ve previously warned about QBE and recent price action suggests that investors should once again brace for some further downside. The rally since early October has failed to overlap the June low which means that QBE is likely to head backwards again and fall towards $9.50.
Current share prices available here.
You can learn more about technical analysis in this article.
Michael Gable is managing director of Fairmont Equities.
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