Share tips – 3 August 2020

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 3 August 2020. You can access the full version of the article HERE.

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Buy Recommendations

ASX:LYC

The rare earths producer has recently made a significant technical breakout by pushing through the downtrend line that had been in place during the last year. LYC should now go on and rally higher from here and we would expect it to retest last year’s high near $3.

ASX:STO

Santos shares have found some good support near $5 and they are now ready to head higher again. We are confident that a low is in place and the share price should now try to head to levels above $6.

Hold Recommendations

ASX:BHP

Commodities should continue to do well on the back of a decreasing US dollar. The BHP share price looks well supported on the chart and the uptrend remains strong. We expect BHP to continue to edge higher from here over time and back into the $40’s by year end.

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ASX:MQG

MQG shares continue their march higher on the back of improving equity markets. The uptrend that has been in place since the March lows looks sustainable and any dips appear to be bought up fairly quickly. We expect the shares to reach $140 within the next few months.

Sell Recommendations

ASX:SUN

There are challenges in the banking and insurance sectors and because of this, Suncorp’s share price has been struggling to gain any traction. The shares continue to look weak and we believe they are likely to head lower and underperform other financial stocks.

ASX:BXB

Whilst the earnings outlook continues to remain uncertain, the market already seems to have made up its mind about BXB with the share price noticeably underperforming against the broader market. The chart is looking negative for BXB shares and at the moment the risk continues to remain to the downside.

 

Michael Gable is managing director of Fairmont Equities.

 

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