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 28 June 2021. You can access the full version of the article HERE.
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WES has formed a cup and handle formation on the share price chart. This is where the share price took a dip from the February peak, retested it in April, but then it congested under it for a little longer. An eventual break above $56 triggered a buy signal and this now leaves WES for a clear run higher.
We consider GMG to be an investment that offers growth and defensiveness because of its exposure to industrial property. From a charting perspective, the share price had spent most of the last 6 months failing to get above the crucial resistance level of $20. It finally managed to get above this level a few weeks ago and we can see with the volumes traded in GMG that renewed buying is now occurring in the stock.
CSL shares bounced strongly in March and have been trending higher since then. When we look at a long term chart of CSL, it looks as though a major low is in place and the shares should therefore continue heading higher. As a growth stock, CSL should also benefit from the easing back of longer term bond yields.
Since upgrading their earnings guidance several weeks ago, ALL shares have seen some very good buying support. It has been making all-time highs recently, but the chart still looks very bullish. We believe that with the strong earnings growth that the company is now experiencing, the stock price can continue to carry this positive momentum.
The share price has been buoyed by positive market movements in value stocks, but fund outflows continue. As this value trade is now nearer the end than the beginning, the rally in PPT shares is starting to wane and it looks like they are now starting to hit a brick wall.
NUF has benefited recently from improved seasonal conditions, but it still looks like the share price has got ahead of itself. When we look at the charts, it still appears as though there is a lot of selling pressure in NUF and the share price is finding it hard to rally. All of this leads us to believe that we will see it come back further.
Michael Gable is managing director of Fairmont Equities.
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