This could be an exciting week. The market’s been annoying a lot of people umming and aahing, up and down. If it goes up this week it could be exciting, but if we go down, June might end up being true to its bad rap as one of the worst historically.
This week we have a national retailer, a lifestyle retail store group and a mining service provider tipped within our respective picks of What’s Hot, Proceed with Caution and What’s Not.
What’s Hot this week is Harvey Norman (ASX:HVN), which has had periods of rises and falls. On March 24 we saw it break through and the stock ran. It’s been holding at the $4.30 level and if it breaks through, we think it could be poised for an upside around the $6.50 mark. There is talk of interest rates coming down and, if so, HVN should be in a good position selling homeware items such as carpets, computers or a new kettle.
Harvey Norman has been trading at $4.52.
Super Retail Group (ASX:SUL) is a “positive cautionary”. Coming off a 30% dip this stock has broken out into all-time highs and been expanding on the way up. It is a good example of how the market understands when a stock is changing personality. If you get the timing right in a good phase this stock looks conducive to making money. When this stock runs, it runs hard. The reason it is a caution? Put it on the watchlist, but don’t buy yet!
Super Retail Group has been priced at $13.64.
Worley (ASX:WOR) Provides services to the mining sector. If materials is down, you would think this this would be down too. We will keep it on our watchlist, but not for next few months. If history repeats itself, and it does, every time this stock has broken through a momentum line it has had a hard time following and has fallen away.
Worley last traded at $14.00.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is 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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