This week, Gary Stone of Share Wealth Systems says the technical signs are promising for ASX Limited (ASX).
“A classic technical analysis setup exists with the share price movement of ASX,” he explains.
“Last Wednesday, the ASX share price completed a 50% retracement of the 42% run-up from September 2015 to August 2016, which coincided with a strong support zone between $43.85 and $44.50.”
This technical trend indicates a rise near, or to, ASX’s previous recent high around $52, says Stone.
ASX Limited (ASX)
Source: Yahoo!7 Finance, 14 November
Sydney Airport (SYD) is also in the ‘likes list’ this week. Raymond Chan of Morgans says the stock has fallen within his “accumulation zone”.
“Below $6, it starts looking attractive,” he says.
Sydney Airport (SYD)
Source: Yahoo!7 Finance, 14 November
Transurban (TCL) is another infrastructure stock in the accumulation zone for Chan, as it is currently trading at levels below $10.00.
Michael McCarthy of CMC Markets is keeping an eye on the construction and software company Aconex (ACX).
He says Aconex’s fall from its mid-year peak may now be over, and that the share price has “formed a double bottom.”
“In my view, an opportunity to take disruption/high potential growth exposures,” he says.
Aconex (ACX)
Source: Yahoo!7 Finance, 14 November
So what’s out-of-favour with our stock selectors this week?
While Chan remains wary of the regulatory risks clouding the outlook for Regis Healthcare (REG), McCarthy doesn’t like Newcrest Mining (NCM).
“A strengthening USD is likely to further batter spot prices – and Newcrest with it,” he notes.
APA Group is in the dislikes list for Stone after falling sharply from a key support zone between $7.90 and $8.10. If it falls further to the next major support zone, the turnaround could be slow and long.
“The next major support zone is the low $6’s, which would be a 50% retracement of the 320% run-up from December 2008 to July 2016,” he says.
“Retracements such as these can take many months, even years, before the share price starts rising again from whatever base they finally find support.”
APA Group (APA)
Source: Yahoo!7 Finance, 14 November
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
