Our analysts have concentrated on the big names today – in both their likes and dislikes.

Likes

Today, Michael McCarthy, chief market strategist at CMC Markets, nominates the flying kangaroo as his favourite stock for the week.

“I like Qantas (QAN) – an 18% lift in profit to a record underlying $976 million, a buyback, and a cautiously positive outlook are all good reasons to examine Qantas,” he says.

The tide may be turning for the tourism and travel industry.

“Importantly, other travel exposed groups such as Webjet and Corporate Travel also reported well, pointing to systemic as well as company specific health,” McCarthy said.

Our chartist Gary Stone of Share Wealth Systems likes Bluescope (BSL). He says it is in a strong long-term uptrend and is holding up very well against the broader market exhibiting excellent relative strength.

“It has recently broken through a zone of light resistance at the $16.00 level and that now appears to be holding as a zone of support,” he says.

The next logical zone is $17.60, where a level of supply is likely to be encountered as this will complete the full upward retracement from the major decline in mid-2009.

“If it’s current support zone fails to support then there’s the possibility of stock retesting the previous support zone between $13.80-$14.30,” Gary says.

Dislikes

Michael doesn’t like Fairfax (FXJ) today. He says the shares have bounced hard on a half-year result that wasn’t as bad as expected.

“However revenue dropped 4%, underlying profit fell 10% and headline profit fell 54%. Can see no reason to own this stock,” he says.

Chartist Gary doesn’t like Telstra (TLS) because it is struggling to find support at the moment at the $3.30-$3.40 area.

“If it breaks clearly below that level then that will likely act as a zone of supply into the future and further delay an upward turn-around in price. The next level of support may be as low as the $2.90 – $3.00 zone,” he says.

He points out that Telstra has now retraced 80% of its entire move from its lows in November of 2010 to its highs in January 2015.

“Every leg down from $5.00 has been accompanied by short term rallies which have subsequently been heavily sold into, showing that an abundance of keen sellers is still present,” he concludes.

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