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 15 October 2018. You can access the full version of the article HERE.
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Near-term earnings risks are low and the stock is not expensive at current levels. The chart looks strong and the shares have been trending higher for several months now. We believe that the uptrend should continue and we are happy to buy at current levels.
We expect solid growth in profit to continue for the company and the shares are not expensive at current levels. Price action remains bullish with the longer term trend remaining robust. Short term price weakness has now presented us with a buying opportunity.
Price action for BHP in the last few weeks was very bullish. It has made new highs for the year and we expect this uptrend to continue. Our technical levels suggest a retest of the $40 region is a possibility in the next few months.
The chart for STO has been strong for over a year now. Despite the recent takeover talk falling away, the share price has continued to climb alongside strengthening oil prices. Momentum remains strong and we are targeting resistance levels up near $8.
Price action has been very weak for BOQ. After breaking support in late September, they have continued to see selling pressure, with volumes kicking in on the way down. We expect the stock to retest the June lows under $10.
AGL broke under support in early August and it has failed to recover much since then. Poor price action leads us to believe that we could see lower levels. The next level of major support is down near $18.
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You can learn more about technical analysis in this article.
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Michael Gable is managing director of Fairmont Equities.
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