Likes
CMC Markets’ Michael McCarthy likes Treasury Wine estates (TWE) after an overdone sell down.
“The sell down last week looks to me like a storm in a wine glass,” he says.
“A trade war between the US and China could provide a significant boost to Treasury Wine Estate’s long term prospects in this key market.”
He can understand why investors would buy this dip
Our chartist, Gary Stone from Sharewealth Systems, likes Computershare Limited (CPU).
He says:
Computershare’s price action is well entrenched in an upward sloping channel, encapsulated by an upper and lower trend line. (see chart above)
It has bounced off the lower trend line on many occasions and recently also found support at the $16.70 – $17.05 zone, which was previously a resistance zone, and also coincided with the lower channel line. More recently, it broke through a downward sloping trend line (black) confirming its strength, and has now once again closed at all-time highs ($18.42).
Given no obvious resistance overhead, it’s probable that the stock could now move towards the upper channel line at the $20.00 zone.
Dislikes
Our chartist and market analyst are unanimous in declaring Telstra a ‘not-hot’ stock this week. Gary says it’s the exact opposite of his like Computershare (CPU).
And Michael says he still doesn’t like it despite nominating $2.85 as a level of interest when Telstra was $4.50. Like Paul in his article today, Michael is not a buyer at current levels.
“Until TLS come up with a plan to plug the NBN revenue hole, in my opinion, the pain of incumbency will continue,” he says.
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