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 May 2018. You can access the full version of the article HERE.
After peaking near $22 in January, MIN then consolidated the prior uptrend. The shares have now broken free of that consolidation and is now rallying strongly on high volume. The stock should now head to a new high. A preferable entry point would be on short term weakness back towards support near $19.
LYC has now broken above key resistance near $2.60. Price action and volume has also been very bullish in the last few months. Any dip is a buying opportunity but the shares are on track to hit our next upside target of $3.50
OZL is testing a key resistance level near $10. Recent price action has been strong it appear as though its only a matter of time until it can push through. A break of that level could see it rally to over $11.
A strong support level has been established in WBC shares. Despite the upcoming dividend potentially causing the stock to fall in the short term, we still believe that WBC can trade higher from here over the next few months.
We rated XRO as a hold in February as we expected it to rally strongly towards $40. Now it has hit our target, we expect profit taking to come in here and traders could therefore consider taking profits with a view to buy back in on a dip.
We previously recommended SBM as a buy, expecting it to rally from about $4 to $5. It is now reaching up towards our target and looking overbought in the short term. We expect profit taking to now kick in and would prefer to wait for cheaper levels to buy back in.
Michael Gable is managing director of Fairmont Equities.
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