Share tips – 28 October 2019

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 October 2019. You can access the full version of the article HERE.

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Buy Recommendations

ASX:NEA

NEA staged a breakout in mid October, indicating that the downtrend was over and triggering a buy signal on the chart. Volumes have been healthy since then on the way up. Based on the way it is trading here, we expect a recovery in the share price beyond the mid $3 range during the next several weeks.

ASX:CWY

CWY is a defensive stock with reliable earnings. The share price fell during the last few months but it has recovered following the acquisition of SKM Recycling and a broker upgrade. It has recently found some very good support on the chart and the share price looks set to recover from here.

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Hold Recommendations

ASX:NAN

NAN is a stock that we have traded well in the past. Most recently if found some good support near $6 and this triggered another buy signal. It continues to trend well and after making another new high, we expect it to establish a new baseline of support near $7.

ASX:WEB

After momentarily retesting the January low, WEB shares then launched higher a few weeks ago with some good buying coming back in. With a solid line of support now established near $10, WEB looks set to at least partially recover some of its recent losses. WEB share’s 2019 peak was up near $17 in May.

Sell Recommendations

ASX:BEN

After failing to push to a new high at the end of September, BEN shares have fallen again and look set to continue the slide. With interest rates heading lower and margins under pressure, the regional banks are not as attractive as the big 4 banks at this stage.

ASX:APX

We turned negative on the APX chart back in August and it continues to look weak. A lot of volume is going through the stock on the downside and this is further weighing down the share price. At this rate we are likely to see it fall back under $20.

 

Michael Gable is managing director of Fairmont Equities.

 

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