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 on thebull website dated 13 November 2017. You can access the full version of the article HERE.
GRR is a speculative trade. The shares launched higher in the last few weeks on very strong volume. This tells us that a low is in place and we should see a swift move towards the mid 20c region. Stop losses should be placed under 15c.
Between June and October, ORG was trading sideways in a symmetrical triangle. It has now broken out of that and this implies much higher levels from here. We see some resistance near $9 but over $10 can be achieved in the next 6 months.
We’ve been a buyer of WPL under $30 and the recent breakout suggests that it will be trading in the $33’s very soon. It should then consolidate for several weeks before it is ready to push past the 2017 high.
We tipped STO as a buy back in this newsletter in September when it was under $4 (along with GXY which has done extremely well). STO still seems to have some legs here and should come close to $5 before hitting some resistance.
Price action for 2017 is looking negative as the share price converges, resembling that of a symmetrical triangle. The shares are likely to break to the downside which means that the stock should retest the 2015 low near $4.50.
The fall in SHL’s share price makes it look like it has fallen down from a rising wedge. It will probably retest the $22 region here, but if it can’t keep heading higher, then SHL is likely to resume the downwards slide towards $17.
Michael Gable is managing director of Fairmont Equities.
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