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 18 November 2019. You can access the full version of the article HERE.
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In the short term at least, AMP appears to have found a low. The last couple of weeks has finally seen AMP make a “higher high” and push beyond the trading range from the last few months. It is now looking more likely that AMP will enter a period of trending higher. We don’t know how that could last but there could be an opportunity here for those looking to accumulate some shares for a longer-term turnaround.
COH has displayed very strong buying support near $200 during the last few months. Recent price action has made us more confident that the sideways trading range from the last few months is about to end. This means that COH has a strong chance of resuming its longer term uptrend and moving on to new highs.
As trade tensions ease and talk of recession dissipates, we have increasingly seen evidence of global growth troughing. One of the key benefits of this scenario is the energy sector. The WPL share price has been on the move recently and we think there is further to go throughout the next few months.
S32 has fallen a long way during the last year, but commodity stocks should do well as the market becomes more positive on global growth. S32 appears to have formed a low on the chart and the share price is set to recover much of its recent losses.
The recovery in the share price from the May lows was put to an abrupt end in October as the company announced a disappointing trading update. The shares have continued to look weak since then with no obvious buying support stepping in to halt the slide. At this rate, based on how FLT is trading on the cahrt, it looks like the share price will continue to fall.
The NST share price continues to tumble, outpacing the declines seen in the gold price itself. As US share markets go on to make new highs, the attraction of gold will continue to be low. The recent falls in the NST share price appear to be acceleration and the next support level is down at $8.
Michael Gable is managing director of Fairmont Equities.
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