Share tips – 22 January 2018

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

This post is an extract from the newsletter dated 22 January 2018. You can access the full version of the article HERE.

Buy Recommendations

The chart for FMG looks very bullish. In December 2017, FMG retested the previous low then broke higher on strong volume. It now looks like staging a strong recovery. We have an initial target of $5.50. If it clears that, then FMG should trade over $6.

TLS had also retested a prior low towards the end of 2017 and then rebounded on strong volume. The shares looks like they will head higher here and current levels are a buying opportunity. The first line of resistance is near $4.

Hold Recommendations

Price action for the last year resembled that of a symmetrical triangle where the OZL share price had been consolidating against the recent uptrend. OZL finally broke out of this triangle a few weeks ago on very good volume. OZL should now resume the uptrend and rally towards $11.

Vocus has been heading higher since the September low and has managed to push through some key resistance levels. We need to see a few more milestones achieved on the chart before considering it a buy, but holders of VOC should continue to see it drift higher for the moment.

Sell Recommendations

In November we had ORG as a buy with targets up towards $10. It has now become quite overbought and we expect some weakness from here. Traders can look to take profits now and look for support to come back in near $8.

Back in October we suggested that the BHP chart looked positive enough to see it rally into the $30’s. After the recent run, we are now taking profits with a look to re-enter at levels closer to $28.

Current share prices available here.

You can learn more about technical analysis in this article.


Michael Gable is managing director of Fairmont Equities.

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