Michael McCarthy from CMC Markets likes Greencross (GXL) this week.
“The veterinary care and products consolidator has experienced digestion issues. The new CEO has cleared the deck, and I note a series of higher share price lows since the May sell off,” he says.
“A higher level of short sellers in Greencross makes it potentially vulnerable to a melt up, especially if it starts to fill the gap above $4.60.”
Our chartist from Share Wealth Systems, Gary Stone and David McCulloch like Flight Centre (FLT). This is what they had to say.
“Flight Centre broke out to a new all-time high in February, breaking through a resistance zone between $53.50 and $55.50. It then retested that zone to establish that as a significant support level.
Subsequently FLT has continued to move higher and had several attempts to break through the $59.29 – $59.70 zone and on the third attempt successfully broke that level.
As is common when break outs occur, a stock will often re-test the break out level. This occurred in early June and the stock is now trying to work its way through the $64.00 level. A clear close, and break out above this level would be a bullish sign. Protective stops can be placed below the lower band of the most recent support level below $59.29.”
Dislikes
Michael doesn’t like Atlas Arteria (ALX).
“The toll road operator moved to internalise its management and consolidate its debt, pleasing shareholders judging by the share price gains,” he says.
“However, in my view the recent pullback from $7 per share looks the beginning of a longer slide as interest rates rise. ALX may become interesting again closer to $5.40.”
Our chartists don’t like Ramsay Health Care (RHC).
“From 2008 until mid-2016, Ramsay Health Care had been a stellar performer, rising in price from $11.00 to an all-time high of $84.08.
Since then, however, RHC has struggled and finds itself in a downward sloping channel, and recently breached a long-term level of support around the $56.00 level. This represents a 38.2% retracement from its all-time high. With that level being broken it opens up the door to possible further falls towards the $47.50 support zone which would also equate to a 50% retracement from its mid-2016 highs.”
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