BHP Billiton has enjoyed a nice run higher since the start of the year – but for investors who missed the boat, could now be the time to jump on board?
Gary Stone of Share Wealth Systems tipped BHP as a buy in February when it closed above $16.89, and thinks current levels provide another good entry point.
“The BHP trade has since continued to develop where it has risen above two resistance levels along the way. A small retracement has occurred recently, back to the closest support zone of $21.30 to $22.55, offering another good entry point,” he says.
And if the stock moves unfavourably?
“The trailing stop should be placed in the $21.30 to $21.80 zone should the trade unravel for whatever reason.”
Raymond Chan of Morgans is still anticipating the sale of Ardent Leisure’s marina business, and for this reason, the stock remains on his likes list.
Evan Lucas of IG markets is backing the banks – particularly National Australia Bank (NAB) – after viewing data from US financials on Friday and “the discount that is still inside the Australian banks.”
J.P Morgan Chase, Citigroup and Wells Fargo all reported earnings beating analysts’ estimates.
Source: Yahoo!7 Finance
“The coming two weeks is likely to see buying ahead of the Australian banking season, starting at the end of October,” he says.
A stock in the ‘dislikes’ list this week is Automated Holdings Group. The share price fell sharply below a key support zone between $4.25 and $4.35, Stone notes.
“Expect a short rally back up to this now resistance zone, where it should find weakness again” he says.
“The AHG share price could move a lot lower to the next support zone between $3.40 and $3.55, which is also the lower zone of a three-and-a-half year sideways trading range.”
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
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 regards to your circumstances.
