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 14 June 2022. You can access the full version of the article HERE.
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Coal prices are expected to remain high due to supply constraints and this will flow through to WHC’s earnings. The share price chart is in a very strong uptrend, yet despite the large share price increases this year, the trend looks sustainable and there are no signs of it slowing down yet.
Gas prices look set to remain high this year due to the war between Russia and Ukraine. It will take a while for supply in Australia to catch up, which means STO’s earnings should continue to benefit. The share price encountered resistance near $8.40 from early March to late May. That resistance level has now been broken which gives us confidence that STO should trend higher again.
Although CSL had under-performed the S&P/ASX 200 since the Covid lows, it has been finding some good buying support these past couple of months as plasma collections across the globe start to recover. Our charting analysis indicates that a low is in place now and CSL’s share price should continue to recover.
The share price of MQG has fallen back from its recent peak as the business outlook remains cautious on what lies ahead with the global economy. However, the business is well positioned to benefit from the current volatility and the share price chart is indicating to us that good buying support remains at current levels.
CBA is our preferred bank out of the big 4. However, we believe that the share price will get cheaper and traders can pick it back up at lower levels. The valuation looks fairly high for an economy that is slowing down. The share price is also struggling here at the top of its recent trading range and that means that we could see it CBA back in the mid $90’s.
In early May XRO shares fell below a major support level near $90. This means that the shares are resuming the downtrend that started in November 2021. Share price weakness is likely to continue as investors here and in the US remain bearish on the technology sector because of rising interest rates.
Michael Gable is managing director of Fairmont Equities.
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