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 13 August 2018. You can access the full version of the article HERE.
Their recent first half results were well received and the share price bounce is the sort of confirmation that more cautious investors would have been looking for. The shares are likely rerate here. And from a charting perspective, CIM could head towards $60 over the next few months or so.
For the last few months, BHP has been range bound between about $32 and $34. We are finally seeing it crack the upper side of that range. We are therefore confident that BHP is on the move again. Our charting levels indicate a rally towards $40 should occur in the next few months.
The last couple of weeks was very bullish for LNG and it pushed through another resistance level. The shares now look on course to head towards at least $1. A clear break of that (and the 2 year base) could see it make a run towards the long term resistance level just above $2.
CGC recently peaked near $9 but has come back to a good level of support. It seems to be finding buying support here. This means that current levels represent a buying opportunity. However, given the severity of the falls during June – July, it may not go to a new high too quickly and could congest around the mid $8’s before getting ready to resume the uptrend.
The share price has struggled recently and a failure to overlap the April low near $5.05 is a warning sign from a charting perspective. Price action indicates that lower levels are on the way and investors should brace themselves for some more pain.
The $5 level was a key support level but unfortunately ORE has broken under that. For the moment we are targeting support closer to $4. If that cannot hold, then we could see a move back towards $3, erasing a years worth of gains.
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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