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Wealth Within senior analyst Fil Tortevski, this week joined by analyst Pedro Banales, has picked real estate investment trust Charter Hall Long (ASX:CLW) as his HotCopper Hot Stock tip today as it approaches a “very important level.”
This REIT is of particular interest, Mr Tortevski explained, because the property market is now very clearly “cooling off… even if people want to say it’s not happening.”
That applies mostly to Sydney and Melbourne, the Wealth Within senior analyst added.
“We’re closing near the high of that November bar following two really nice periods of expansion,” Mr Tortevski continued. “You’d be pretty hard pressed to find a very clean scenario where there’s clear highs and lows recently.”
Strong buying, healthy selling, and CLW’s ability to avoid the bottom for a meaningful period were all reasons behind the Wealth Within analyst’s interest today.
“It’s definitely good yeah,” Mr Banales agreed. “If it does get above that level above that $4.30 where we’ve seen a lot of support and resistances, [then] there’s a lot of price agreement around that band. [Should it get there] then that will definitely be the band to watch out for going forward… maybe a short term play.”
The Charter Hall Long REIT last sold at $4.01 on Tuesday.
Proceed With Caution
Harvey Norman (ASX:HVN) is Wealth Within’s caution stock for the week, though Mr Tortevski made clear it’s “not a bearish caution by any means… this one is a bullish caution.”
The main reason for that, the senior analyst explained, is just how much of an upward trend the Australian retailer has been in since midway through 2020; and that’s why some caution is still very much needed too.
“Nice buying, healthy selling… what’s different is we’re accumulating sideways. That’s not a bad thing but it could go sideways for a while,” he said.
Once it hits new levels, Mr Banales said, you then want to move in “sharply.”
Harvey Norman last traded at $4.815 at 4pm Sydney time today.
Not Hot
Finally, the Not Hot stock pick of the week was Aussie healthcare company Healius Limited (ASX:HLS), which specialises in pathology and imaging.
Don’t try to “catch this falling knife,” both Wealth Within analysts warned. Mr Tortevski then added: “You’re probably sick of us talking about [not catching knives on the show, but it’s so important because time and time again trying to pick the bottoms comes with danger. The safer move is waiting for confirmation.”
Carefully picking the new low will be the key to trading Healius – though it’s better avoided.
Healius Limited sold at $1.41 a share at close as the Aussie bourse wound down.
This show comes in the lead-up to Wealth Within’s live YouTube show tonight at 7pm AEDT.
You can join conversations on Wealth Within’s tips on HotCopper here.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He’s also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.
Disclaimer: While Wealth Within holds an Australian Financial Services License (AFSL:226347) the information featured in this program is general in nature and therefore should not be relied upon. Before making any investment decisions, you should consult a licensed professional who can advise whether your investment decisions are appropriate for you.
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