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Michael Gable, Fairmont Equities

 

BUY RECOMMENDATIONS

 

Caltex Australia (CTX)

Chart: Share price over the year

This fuel giant has made a large three wave correction since its peak in 2015. After firmly establishing support at $28, it broke through major trend line resistance at mid $32 levels. Given its momentum, we believe it should make a quick run up towards the high $30 levels. The shares finished at $32.17 on June 8. 

 

JB Hi-Fi (JBH)

Chart: Share price over the year

I was negative on the JBH chart last year when it was trading at $28 levels and forecast it to fall to trend line support levels of $22. JBH should head higher from here, but downside risks remain. Put a stop below $21. Expect resistance near $25.50 and then up at $27.50. Shares in the electronics giant closed at $21.61 on June 8.

 

HOLD RECOMMENDATIONS

 

iCar Asia (ICQ)

Chart: Share price over the year

The ICQ chart is looking good, but there’s no rush to buy just yet. It seems to be making some higher lows, which may mean upside is imminent. There’s resistance at 32 cents, so traders should keep watch in order to buy the breakout. Shares in this automotive classifieds website closed at 27 cents on June 8. 

 

Healthscope (HSO)

Chart: Share price over the year

The private hospital operator was smashed from above $3 in October last year following a profit warning. Following the plunge and trading at $2.24, we forecast a fall to near $2 on our reading of the chart. It was priced at $1.99 on May 30. The stock is washing out the sellers, so there’s a chance of it bouncing here. We may soon see the first signs of accumulation. 

 

SELL RECOMMENDATIONS

 

Flight Centre (FLT)

Chart: Share price over the year

When trading at low $30 levels in April, we forecast on this site a short term move towards $34. FLT exceeded our target to trade above $37. We saw rejection at that level, which is also the long term downtrend line. As a result, we expect FLT to fall towards support at $34. The shares closed at $35.64 on June 8.

 

Westfield Corporation (WFD)

Chart: Share price over the year

After peaking last year at $11.14 on July 26, the stock fell to $8.24 on May 18, 2017. It then tried to rally, but we can see now it was merely forming a symmetrical triangle. This continuation pattern is clear to us because the stock recently broke below support. In our view, WFD should now resume the downtrend. We have support near $8. If that can’t hold, then strong support will come in near $6.70. The shares finished at $8.47 on June 8.

 


Janine Cox, Wealth Within

 

BUY RECOMMENDATIONS

 

Suncorp Group (SUN)

Chart: Share price over the year

This financial services company has proven to be quite defensive in recent months. It’s held up well relative to the declines experienced by the big banks. SUN recently broke above an important long term resistance level around $13.70, and has the potential to trade to around $17 in the medium term. The shares were trading at $13.92 on June 8.

 

Programmed Maintenance Services (PRG)

Chart: Share price over the year

As a smaller stock, PRG is far less liquid and suited only to educated traders with a good understanding of risk management. Patience is required. A strong weekly close above $2 would indicate the low in 2016 was the end of a long term decline, and the share price is likely to continue higher. The shares were trading at $1.87 on June 8.

 

 

HOLD RECOMMENDATIONS

 

Nufarm (NUF)

Chart: Share price over the year
 

In September 2016, this crop protection products company broke an important price level around $9 before continuing higher in 2017. With a solid trend supporting the current rise, NUF has the potential to trade to between $11 and $12 in the short term. The shares were trading at $9.875 on June 8.

 

Mirvac Group (MGR)

Chart: Share price over the year
 

While property stocks generally aren’t as volatile as mining shares, they can move around by 5 per cent in a week and MGR is testament to this. The company pays solid dividends, but the shares may fall further as the ex-dividend date approaches later this month. 

 

SELL RECOMMENDATIONS

 

 

Qantas Airways (QAN)

Chart: Share price over the year
 

Low oil prices have lifted QAN shares to highs unseen for many years. This month, QAN flew above a psychological level around $5. A move back below $5 indicates it’s time to consider taking some profit. The shares were trading at $5.14 on June 8.

 

Computershare (CPU)

Chart: Share price over the year
 

This share registry company fell by around 35 per cent between March 2015 and August 2016. It recovered earlier this year to trade to a new all time high, but, in our view, the current run appears to be coming to an end. The stock reached a 12 month high of $15.39 on May 10. As CPU was recently trading below $14.35, we expect a further fall to between $13.70 and $12.80. The shares were trading at $14.27 on June 8.

 


Gavin Wendt, MineLife

 

BUY RECOMMENDATIONS

 

Orinoco Gold (OGX)

Chart: Share price over the year

This emerging gold producer is addressing initial production issues at its Cascavel gold mine in Brazil, and is close to completing a full technical review of the operation. Encouragingly, AngloGold Ashanti recently became a major shareholder and strategic project partner in Orinoco – reflecting confidence in Cascavel prospects and its potential return to production.

 

AusQuest (AQD)

Chart: Share price over the year

Recently negotiated a strategic alliance agreement with diversified miner South32 (S32) to explore and develop a pipeline of high potential opportunities. South32 will fund exploration. South32 has identified six AusQuest projects of interest  – three in Australia and three in Peru.

 

HOLD RECOMMENDATIONS

 

Centaurus Metals (CTM)

Chart: Share price over the year

A Brazilian mineral explorer that’s focused on greenfield gold and copper exploration projects, with a particular focus on its 750 square km exploration package in Para State, located between several world class mineral deposits. A maiden diamond drilling program at the Serra Misteriosa gold target is underway. 

 

Orion Minerals NL (ORN)

Chart: Share price over the year

ORN recently acquired advanced, potentially company making gold base metals projects in South Africa, where previous mining activity has been undertaken and substantial resource growth potential exists. The company has investor and funding support from Tembo Capital, which has minimised shareholder dilution. Key upcoming milestones include a maiden JORC resource at its Prieska copper project and funding announcements.

 

SELL RECOMMENDATIONS

 

Fortescue Metals Group (FMG)

Chart: Share price over the year

Iron ore prices recently fell to around $US55 a tonne, a low level in 2017. With more downside predicted, iron ore producers are going to be under further pressure. The situation is exacerbated for pure iron ore plays like Fortescue Metals, which, unlike BHP and RIO, is fully exposed to iron ore. With the potential for iron ore to fall below $US40 a tonne later this year, we expect companies like Fortescue to come under additional selling pressure.

 

Energy Resources of Australia (ERA)

Chart: Share price over the year

Like iron ore, uranium, in our view, is also a commodity with a bleak outlook. Abundant supply has taken its toll on the spot price market, which, in turn, has impacted listed uranium exposures. ERA is one stock with particular challenges, with the market concerned about its ability to fund closure rehabilitation costs at its Ranger mine in the Northern Territory. 

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