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 22 July 2019. You can access the full version of the article HERE.

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BUY RECOMMENDATIONS

ALU

The weakness seen across February – June had formed a bull flag which sat on top of the 2018 high. This is a bullish charting sign, and ALU has now broken free of this flag. This means that it is likely to continue trending higher and any weakness is another buying opportunity.

BAL

It looks as though we’ve seen a floor in the share price and BAL appears ready to go for another run. Price action the last few weeks looks very positive and volumes are coming back into the stock. We like BAL as a short term trade and expect it to head back towards $11.

HOLD RECOMMENDATIONS

CWY

We have been bullish on CWY for a while.The stock has now started to move again and should rally higher higher from here, resuming the uptrend that has been in place since listing. The company has also shown to be quite defensive when markets are weak.

RRL

The price of gold should head higher and RRL is a great way to gain exposure to these rising prices. RRL has been performing extremely well during the last several weeks compared to other listed gold companies. Momentum remains strong and tt should still have further upside from here.

SELL RECOMMENDATIONS

MGX

Ever since it dropped nearly 12% in one day in early June, MGX has been on a slippery slope. Price action on the chart remains poor. A falling share price whilst iron ore prices continue to rise is not a good sign for MGX. The risk for the MGX share price remains to the downside.

DOW

DOW has continued to trade poorly, ever since the company’s partner filed for administration in late May. A lot of volume continues to go through the stock and it is struggling to do much when the market has a positive day. For the moment it looks as though DOW will continue to drift lower.

 

Michael Gable is managing director of Fairmont Equities.

 

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