This week CMC Markets’ Michael McCarthy likes Platinum Asset Management (PTM) after a share price turn.
“In my view, independent fund managers are potential winners from the Royal Commission. April funds flow shows funds under management hit two-year highs – momentum can be viewed as positive,” he explains.
This week our chartist Gary Stone from Share Wealth Systems likes Fortescue Metals Group (FMG).
Fortescue’s share price has found support at the $4.20 to $4.55 support zone (bottom blue rectangle) for a third time since June 2017. This zone also defines the all-important 50% retracement level of the 370% run-up from around $1.50 in January 2016 to the peak at $7.27 in February 2017.
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The apex, defined by the declining black trend line and the lower support zone, has now narrowed to a point where either FMG will rise strongly, potentially to the $5.70 to $6.00 resistance zone in the first instance, or fall below the lower support zone.
Two further technical pieces of evidence put the odds in favour of the strong rise: the breakout above the black down trend line, and the volatility breakout on Friday above the stepped red line, my Average True Range signal line.
Dislikes
Michael doesn’t like Treasury Wine Estates (TWE), although he is a fan of their product.
“Recent share price gains make Treasury look too expensive for me at around 38 times earnings. Selling now to buy back at lower levels,” he says.
And Gary just says he doesn’t like CBA and AMP – but does that really need an explanation after the Royal Commission and APRA’s report on CBA?
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