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 24 February 2020. You can access the full version of the article HERE.
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Goodman Group recently reported very solid numbers during their half year results, upgrading guidance along the way. From a charting perspective, they have gapped up to a new high. This is a sign of strength and indicates that this REIT will continue its trending higher from here.
The CBA share price had spent the back half of last year unable to make any headway. It then broke through some major resistance in January and the share price continued to rally on the back of some solid half year results. With momentum coming back into the share price, I expect it to continue rallying higher from here.
AWC seems to have formed a double bottom on the share price chart and good buying support is coming back into this aluminium producer. With aluminium prices forecast to head higher and an attractive dividend on offer, the AWC share price should climb higher from here.
The shares of this gold producer are trading very well and we think that the recent lows will hold. By pushing through some major technical levels, more volume is coming into EVN shares and we expect the share price to continue climbing from here.
There cannot be a starker difference in the performance of the big 4 and the regionals. With BEN continuing to head lower and having to raise more funds, we cannot see much further upside for a while. With better opportunities elsewhere in the market, there is no reason to be holding BEN at this point in time.
TLS shares have had a good run over the last year but they appear to be topping out on the chart. With the TPG/Vodafone merger now being approved, those competitive pressures will only weigh further on Telstra’s business. At this rate, it looks as though the share price will continue to fall.
Michael Gable is managing director of Fairmont Equities.
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