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 7 October 2019. You can access the full version of the article HERE.
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Santos shares broke above a major resistance level the week before the Saudi oil attacks. Despite the heat coming out of the energy stocks, Santos continues to hold up well. This is a very bullish sign and indicates that Santos shares can head higher from here.
The last several weeks has seen interest rate sensitive stocks such as GMG come back to lower levels. However, it now looks attractively priced for its sold fundamentals and we can see some good support coming back in on the chart. We are happy to buy it here as it should resume its longer-term uptrend.
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The business continues to do well and buying support should continue to exist for companies such as COH that can reliably grow in low growth environment. The charting profile for COH looks very attractive here with good support above $200. Recent price action indicates to us that the shares are ready to head higher again.
The shares were oversold in July when the company announced earnings figures that were under expectations. The stock is not as expensive as other technology companies and it appears as though investors are taking another look at it. Since mid August, the shares have traded very well and price action is looking bullish again and we therefore believe that there is more upside from here.
The share price took a battering in early August on the back of a weak full year result. Since then it has been unable to recover. Price action during the last few weeks continues to look weak and from a charting point of view, the risk remains to the downside.
Falling under support near $13 in mid-September was a negative sign for A2M. Volume on the downside has also picked up which provides additional selling pressure in the stock. For now it appears as though the uptrend in A2M is over and investors looking to buy the stock can be patient and wait for lower levels.
Michael Gable is managing director of Fairmont Equities.
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