Likes
This week CMC Markets’ Michael McCarthy likes Alumina (AWC).
He says surging aluminium prices on Russia sanctions are a key driver of AWC’s share price.
“Long lead times and geo-politics mean supply side responses may be limited. I think this rally has further legs,” he says.
Our chartist Gary Stone from Share Wealth Systems likes Bluescope Steel Limited (BSL).
This is what he has to say about it:
“Bluescope broke through the $14.00 to $14.50 resistance zone late in 2017 and that is now acting as a zone of support. After two clear attempts at testing the $16.00 to $16.50 zone, last week BSL may have broken through this resistance zone on its third attempt. The stock has very high Relative Strength, having risen over 38% in the past 6 months, and is now poised to continue its long-term trend of recovery to reach its next upside target of $20.00, which is the 38.2% retracement level of its fall from $50 to $1.50 from June 2008 to August 2012. For protection, stops can be placed below the $14.00 level.
Dislikes
Michael doesn’t like AMP (AMP) even though surging volumes after a 25% plus drop suggest some see AMP as a bargain.
“I disagree strongly. Deliberate, repeated deception of customers and regulators is very different to system errors and omissions. I think this stock is heading for more trouble,” he says.
Gary doesn’t like Transurban Group (TCL)
He says it has made a series of lower highs and lower lows since the beginning of the year and is now clearly establishing itself in a downward trend.
“This is evidenced by the series of lower peaks and lower troughs on its chart. Each Peak, acting like zone of Supply, can be seen appearing at lower and lower levels as sellers are quick to respond to any bounce in price. Similarly, each Trough, acting like a zone of demand, can also be seen appearing at lower and lower levels showing a reluctance to buy at previous higher prices. It has very recently retested the $11.00-11.10 zone and this is currently acting as support for the time being. If this level fails to hold it opens the door for a move down towards the $10.50 zone initially.”
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