12 February review:

As one would expect some of the picks below have risen and others fallen. Overall the picks are about 2% up for the 6 or so weeks since being listed and none are saying they need to be sold.

Yearly picks 15Feb21

 

I did a scan of the ASX 300 and came up with the undermentioned stocks that all appear to have strong potential to rise. I'll revist these in a few months and see how they fared. Remember to do your own research and analysis. While I have a success rate of around 70% with my picks (which sounds great) it needs to be recognised that means that 1 in 3 of these picks will not fulfill its potential.

Note that where the stock code is highlighted in green I see it as having a higher probability of rising than those not highlighted.

 

API

Appears to be rising off a low which looks like the bottom of the last price cycle (although there is always the possibility price could fall again to make a new low). Price has broken above a downtrend line and risen for 11 weeks (but fallen for the last 2). If price can break above $1.33 there is a potential target of $1.55

API 1Jan21

BPT

Price did not fall back to the blue dashed long-term support line but has made a new uptrend (not possible to fit a trend line to it as yet). Price is making higher lows and higher highs and has broken above a level of resistance at $1.78 to give a target of $2.39. Having broken resistance price has fallen back to retest that level. Price should now resume its climb and potentially be a long-term hold.

BPT 1Jan21

CPU

Price has come off a significant low close to a line of long-term support (blue dashed line) to make a new uptrend and higher lows and higher highs before breaking above resistance at $14.00 to give a potential target of $16.00. Price rose towards that target only to fall back over the past 2 weeks. I’d expect price to head towards $16.00 and potentially be a good long-term hold as CPU’s history shows long rising trends.

CPU 1Jan21

DOW

A similar story to the other stocks here – coming off a significant low and level of long-term support to make a new uptrend with higher lows and higher highs. Price has been attempting to break above resistance at $5.30 and assuming it eventually breaks up from that level, there is a potential target of $6.66. More of a medium trade potential I suspect given the saw-tooth chart pattern of previous uptrends would have been difficult to trade comfortably long-term.

DOW 1Jan21

IFM

IFM appears to be trading in a large price channel and like other stocks listed here price has risen from a significant low to try and break resistance at $1.95. Assuming it does move up there is a potential target of $2.37. While the price channel would suggest price should make new highs above $2.50 Elliott Wave (if my wave count is correct) on the other hand could be suggesting price is rising of Wave B which would see price possibly stop at $2.18 which is a strong level of overhead resistance.

IFM 1Jan21

IVC

IVC has trended beautifully for almost 2 decades before its decline over the past 2 years. The risk here is that the decline has further to go, but price has risen to make a new uptrend (no valid uptrend line as yet) and it is also showing higher lows and higher highs. Price has stalled at $12.00 being a level of resistance. Assuming price breaks higher there is a target of $14.62 on the horizon. Assuming IVC returns to making good consistent uptrends, it could prove to be a good long-term hold.

IVC 1Jan21

OSH

OS has been rising in a shallow price channel from a significant low. Price has paused at a level of resistance ($3.93) and a good break above this level would suggest a target of $5.25. OSH tends to be quite volatile but following the recent Covid fall it is not inconceivable to think price could return to its former level around $7.00. There are a couple of gaps in the weekly chart around $7.50 where price gapped down during the Covid fall and price usually rises to fill gaps – ie it could be expected to continue a general uptrend to that level. Of course ‘usually’ doesn’t mean ‘always’! OSH could be a good long-term hold.

OSH 1Jan21

PPT

PPT made a significant low in March before recovering strongly to a level of resistance around $34 which it tested twice before falling back to retest its lows of $27. It has since risen strongly again to that same level where it has been stuck for 4 weeks. If it breaks higher there is a target of $43.43. Not a stock I like as it is quite volatile and has a history of making large and very rapid falls in price. That said, I think PPT (if it breaks resistance) could be a good short-term trade.

PPT 1Jan21

SIQ

SIQ has made a classic Elliott Wave 1 and Wave 2 rise and retest from a significant low. It has risen from the end of Wave 2 into (assumedly) Wave 3 which is the strongest rising wave of a price cycle. Price has hesitated at a resistance level of $7.00 and a break higher would see a target of $8.89. Historically, SIQ has trended well at times and could be a good long-term trade. Of interest there is a gap on the weekly chart at $11 and as noted above it is quite usual for a gap created by falling price to subsequently be ‘filled’ by a rising price.

SIQ 1Jan21

STO

A similar story to the other listings. Price has risen from a significant low to have 2 attempts at breaking above resistance at $6.30. A break would suggest a target of $7.90. Interestingly STO has made a Double Bottom (look it up!) which usually predicts very strong price rises away from the lows.

STO 1Jan21

WPL

Not surprisingly WPL has made a similar pattern to STO since the March Covid low, although it had a deeper retest to $16.94 from its initial rebound before rising to hesitate at $23.70 which is a level of resistance. That level doesn’t coincide with my resistance of $24.75 as drawn on the chart – but that could be down to resistance levels being very subjective – or put another way, I might be wrong! Anyway, a rise above $24.75 would give a target of $32.60 which is coincidentally very close to a gap in the fall into the March low. As noted before gaps often fill.

 WPL 1Jan21

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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