Likes
CMC Markets Michael McCarthy likes Origin Energy (ORG). He says production and revenue are increasing, with a potential kicker from higher gas prices.
“The chart shows an uptrend. Am happy to buy on a break up through $10,” he says.
Our chartist Gary Stone from Share Wealth Systems likes Rio. This is what he has to say about it:
Rio has improving Relative Strength and has recently had several attempts to break through an overhead resistance at the $81 to $82.50 zone (small blue rectangle at right of chart). Each time this occurs, excess supply is removed and, with improving demand, it’s a just a matter of time before that zone is broken. A break of that zone would open the door to the next target of $90.00, which also happens to be the post GFC high from early 2011.
Rio’s price is around the median line of the rising channel, shown by the rising red trend lines. The overhead resistance zone and the upper red channel line meet at around the price target of $90.
Protective stops can be placed around the $74.30 level (using a Trailing Stop line which is not shown).
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Dislikes
Michael doesn’t like Mirvac Group (MGR).
“The retail property exposures are, in my view, a drag on Mirvac’s outlook.”
He says the recent rally is an opportunity to bail out.
And Gary has joined the chorus that doesn’t like AMP.
Over the past eight years AMP has moved in a broad range, between the $3.55 to $3.70 support zone (very bottom blue rectangle), and the $6.80-$7.00 resistance zone (very top blue rectangle). Three other support and resistance zones have formed between these two outer zones.
Over the last two weeks AMP’s share price has fallen rapidly below the $4.20 to $4.40 support zone (second from bottom blue rectangle) and, despite a short-term bounce, the odds are that AMP will fall further to the lowest $3.55 to $3.70 support zone, which coincides with the lower black declining channel line. When such negative price action occurs, the odds are that the share price will languor at these lower levels for many months, even years. There are plenty of better alternatives from a technical point of view.
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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 regard to your circumstances.