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 9 December 2019. You can access the full version of the article HERE.
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Since turning bullish again on commodity stocks a few months ago, we have only seen increasing evidence that this sector has further to run. RIO shares continue to trade in a positive way and they look set to push beyond their prior highs. Any dips are a buying opportunity.
Next year looks to be a good one for the energy sector. STO continues to trade well here and looks well supported each time it takes a dip. We are confident that the uptrend will continue on through the first half of 2020.
This property trust looks reasonable value compared to its peers but it also has a charting profile which indicates that it is ready to head higher again. With an ex-dividend date towards the end of December, we can see that buying support should keep the share price moving higher.
After peaking in July, MFG then pulled back to consolidate the huge rally that started at the beginning of the year. It now looks like the consolidation is over and MFG is set to move higher again. With positive share market in the background, MFG is set to retest its old high above $60.
The market seems to have factored in a lot of improvement in earnings, but the share price has gone too far. It is now showing signs of weakness up here and it looks like the GUD share price will continue to slide back to more reasonable levels.
Many analysts expect the second half to improve as the death rate rebounds. However, IVC shares continue to trend lower as the market starts to recognise the risk in this assumption. I expect the share price to drift back towards support near $12.
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