Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.
This post is an extract from the newsletter dated 12 September 2016. You can access the full version of the article HERE.
BUY RECOMMENDATIONS
Gateway Lifestyle Group (GTY)
Offers designer homes in a community environment. After its full year results, GTY was sold off in response to conservative guidance. We expect the company to make new acquisitions, which should be positive for the share price going forward. We believe a low is now in place. The shares were trading at $2.275 on September 8.
Northern Star Resources (NST)
The gold chart looks bullish and I expect it to trend up to a new high for the year within the next few weeks. Gold producer NST has been oversold and support is coming back to the stock. With markets looking more volatile, gold should prove to be a good hedge for investors.
HOLD RECOMMENDATIONS
SAI Global (SAI)
SAI seems to have formed a double low on the chart and we’re seeing positive divergence with the relative strength index. Recent results met expectations, so I expect the stock to head higher from here. We have resistance levels around $3.90 and near $4.50. Shares in this risk management business were trading at $3.47 on September 8.
Vocus Communications (VOC)
The stock has plunged more than $1 since it reported on August 23. This weakness means VOC could re-test the longer term uptrend line at low $7 levels. I recommend holding in anticipation of a bounce. The shares were trading at $7.415 on September 8.
SELL RECOMMENDATIONS
BHP Billiton (BHP)
In August, the global miner managed to surpass the high point achieved in April. However, it then gapped back down. This island reversal on the chart is the sign of a top. By going to a marginally new high for the year, BHP is now vulnerable to re-testing the post Brexit low. That is, it will threaten the June intraday low of $17.29. The shares were trading at $20.15 on September 8.
The A2 Milk Company (A2M)
Having spent much of this year forming a large flag, A2M finally broke out near $1.60 and had a quick run to above $2.20. But a bearish engulfing reversal signal has emerged on the weekly candlestick chart. I expect the share price to fall. The first level of support will come in at the $1.60 level. If that can’t hold, then I am looking at $1.40. The shares were trading at $1.97 on September 8.
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Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.