Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.
This post is an extract from the newsletter dated 15 August 2016. You can access the full version of the article HERE.
Bellamy’s Australia (BAL)
The infant formula company has previously found strong support near $10. After a struggle, it pushed through resistance at $12 on strong volume. We expect BAL to resume the longer term uptrend and head to new highs later this year. The shares were trading at $13.43 on August 11.
Capilano Honey (CZZ)
Premium honey sales to China are increasing and we believe the stock is cheap at current levels. It’s trading within an ascending triangle formation, and we’re expecting an imminent breakout to the upside. If this happens, we expect a swift move to mid $20 levels. The shares were trading at $19.92 on August 11.
Price action has turned bullish in the past few weeks as it bounced off its previous low near $130. We have also seen a buy signal triggered on the weekly MACD (moving average convergence divergence). We anticipate the vitamins and supplements maker to move higher, with resistance kicking in around $190. The shares were trading at $157.47 on August 11.
Mantra Group (MTR)
The accommodation services provider looks undervalued. The share price is finding good support at low $3 levels. If the stock can break through $3.80, then it should move towards the next level of resistance near $4.20. The shares were trading at $3.505 on August 11.
Adelaide Brighton (ABC)
The building materials company is looking expensive and several sell signals are emerging on the charts. The company reports at the end of August. We’re concerned the market’s lofty expectations may not be met. This leaves ABC vulnerable to some significant downside.
Insurance Australia Group (IAG)
Another stock that looks expensive. The shares have enjoyed a steady climb since June 29 when priced at $5.34. We can see major resistance around $6. The shares were trading at $6.045 on August 11. If it fails to go higher, then we expect the price to fall back towards $5.
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Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.