Stock tips – 9 October 2018

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HUB24 (HUB)

After rallying strongly during April - May, HUB then came back to retest the previous low (circled). Since then it has been congesting against that strong rally from 6 months ago. There is now an obvious line of resistance forming near $13.50. If we get a good close above that, then that breakout should result in a quick move higher for HUB, leading to new highs. For now we are neutral as we firstly wait for the breakout.

nearest resistance ~$13.50, nearest support ~$12.50




Clinuvel Pharmaceuticals (CUV)

Despite the huge rally recently for CUV, it actually looks as though the shares can trade higher. We have noticed that price action in the last several days resembles that of a flag, with volumes dropping on the way back. This means that there is a good chance that CUV will break above this flag and go for another run higher. A break under it is obviously a negative, so traders should wait for an upside break which should result in another short term trading opportunity.

nearest resistance ~$22, nearest support ~$21.20



Rural Funds (RFF)

RFF peaked at the end of 2017 and then went on to form a pennant against the prior uptrend. It broke out of this pennant several weeks ago. It looks like easing back in the short term, but longer term this breakout is a good sign for RFF and there is a high chance that it resumes the uptrend, heading to new high in the next few months or so.

nearest resistance ~$2.25, nearest support ~$2.10



AusNet (AST)

Price action is starting to look positive for AST after it shed a bit of value in the last year. For the last couple months, it has been putting in some higher lows, and it now also looks like breaking the downtrend line that has been in place for the last year. It is early days, but a push through $1.70 would make us more confident that it is on the move again and that would trigger a buy signal for those investors who follow the stock.

nearest resistance ~$1.70, nearest support ~$1.60



Carsales.com (CAR)

The chart for CAR is a bit messy. Although we can say that it has been trending up for a number of years but has spent much of 2018 trading in a range. That range appears to have an upper limit near $15.50, with the stock making some higher lows since April. The fact it is making higher lows is a positive. However, volume has been increasing on the way down during the last few weeks, and that is not a good sign. Support is back near $14. We can't be confident of the stock making much progress until it can make a weekly close above resistance near $15.50.

nearest resistance ~$15.50, nearest support ~$14



Lendlease (LLC)

LLC has formed an evening star reversal on the weekly chart (circled), signifying the end of the uptrend. Recent price action has also looked weak, with volume picking up on the way down. We have also seen the recent peak fail to overlap the previous low on a weekly basis (indicated by the horizontal lines). All of this tells us that the LLC continues to look under pressure and there is no rush to be buying it yet. We can see some support just under $18, but we would rather wait for some evidence first that the slide has stopped.

nearest resistance ~$19.70, nearest support ~$18


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