Housing market the key to HotCopper Hot Stocks this week… but one is a gamble

Wealth Within analysts Fil Tortevski and Pedro Banales turned to housing for their HotCopper Hot Stock tip this week, with Charter Hall Group (ASX:CHC) in their sights.

Despite volatility in the sector, both believe CHC presents a “really good chance.”

“With the way the housing market is since the rate rises, we’ve seen builders struggling along, liquidity… or even leaving the space entirely,” Mr Tortevski said. “And yet – these stocks are rising. We can ride that momentum.”

He then warned that it was very much “playing on the speculation side of things” but added everything looked quite promising for the stock short-term.

Mr Banales agreed things need to be pretty well planned but it should all work well.

“I like it,” he said. “Look at the weekly chart – the volume spikes on these up moves then tapers off again. There’s volume coming up again in September and it’s tapering off again; there’s volume coming back here now.”

“It’s looking like it’s getting ready to do something.”

CHC is selling at $15.47, down around 0.19% through trade today.

Proceed With Caution

Sims Limited (ASX:SGM) has been dubbed the “cautious” stock this week, with Mr Tortevski warning investors that this may not be the way to get into housing.

“It is a similar [space] to Charter Hall, and gets effected by things there,” he explained.

However, three large trends down from 2014 to today have both the Wealth Within analysts worried; things look like it’s all dipping down – though a chance may eventually pop up around the $9.70 resistance that looks built-in.

Sims last traded up 0.3% to sell at $13.42 at close.

Not Hot

Finally, Iluka Resources (ASX:ILU) has been clearly dubbed “not hot” – despite Goldman Sachs actually dubbing this one as their pick of the year.

“This is clearly pointing down… it’s closed the month right on that low,” they said.

The biggest issue, Mr Tortevski said, was that there was a trap that just popped up with Iluka Resources where it looked like it was recovering in late 2024. Instead, it’s dipped even further into the red through January this year.

“There is nothing healthy happening with this one,” he added.

Through Tuesday today, Iluka has stayed relatively flat to sell at $4.42 a share.

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.

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