Likes

Michael McCarthy from CMC Markets likes Transurban (TCL), although the deal for Westconnex is complex, and above previous price expectations.

“However the detail reveals a higher commitment from the state government, and the strategic value of the deal to Transurban makes it an interesting proposition,” he says.

Gary Stone from Share Wealth Systems likes Santos Limited (STO), as the recovery in Santos’s share price continues.

“The recent break above its $5.90 – $6.20 resistance zone confirms a high probability up trend continuing to the top of the rising red channel. Santos should find resistance at the upper channel line coinciding with its next resistance zone between $7.75 and $8.00,” he says.

Dislikes

Gary doesn’t like Fortescue Metals Ltd (FMG) after support at the $4.30 – $4.50 zone finally failed to hold. That has seen FMG’s share price fall away quite quickly.

“This was also the important 50% retracement area of the huge 2016/17 run-up from $1.40 to $7.20,” he says.

So where to now?

According to Gary, the down trending black channel does not augur well for FMG, which could see its share price head below $3 again.

“However, two support areas may steady its fall. Firstly, the $3.67 area, which is the 61.8% retracement, and the $3.10 – $3.30 zone,” he says.

But a decline to the bottom of the channel could take Fortescue to the low $2!

Michael doesn’t like QBE at these levels, even if some may be tempted.

“The third failure in 12 months at the $11.20 mark indicates to me that shareholder support is waning,” he says.

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