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 July 2018. You can access the full version of the article HERE.
NST remains in a long term uptrend and is ready to head higher after a recent pullback. NST has now made a small 3-wave correction on top of a prior high, which is a bullish sign. We expect the share price to now moving up from here and make new highs.
After peaking in mid 2016 after a huge rally in the prior few years, NAN then spent the last couple of years consolidating the move. It has now finally broken the downtrend on godo volume. NAN should resume the prior uptrend and rally strongly to a new high over the next few months.
With CTD recently heading to a new high, it has been become clear that it has now broken a 4 month ascending triangle. This means that despite the new highs, CTD is likely to continue rallying higher and any dips are a buying opportunity. A breach under $24 would be a concern however.
After peaking in early April, FNP eased back for several weeks. It then found plenty of support on top of the February high which is a bullish sign. It is now making new highs again so we can be confident that FNP is resuming the uptrend.
After reporting well in February and making a new high, BRG was then sold down by nearly 20%. It has struggled to make much headway since then. We have noticed that it went up into the low point that was made in early February, but then turned around and started heading south again. This means that it has a good chance of accelerating downwards again to make a new low for the year near $10.
We have been impressed by the stellar run in QAN but for the moment the share price appears under pressure. It recently went to a slightly new high but was then heavily sold down, erasing several weeks worth of gains in just a few days. This is a negative sign and we therefore expect the share price to now now come back towards support near $5.50
Current share prices available here.
You can learn more about technical analysis in this article.
Michael Gable is managing director of Fairmont Equities.
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