2 buy and 1 sell, LSE listed stocks this week

Thursday, Nov 08 2018 by
8

This week we focus on stocks listed on the London Stock Exchange instead of American stocks. There are two reasons for that. One is that we are not limited to American stocks only when it comes to auto-generated algo-based technical analysis and recommendations. We cover stocks for 12 countries worldwide. The second reason is that we found some interesting stocks listed on LSE that could turn out to be good bets in the coming weeks and months.

We first chose some criteria, based on which we found three stocks. Under our stock selection option, we filtered for liquidity, set at 75 million pounds or above, volatility between 6 and 16, so we do not end up with very low or very high volatility stocks, and lastly if they were technically positive or negative.

CENTRICA PLC (CNA.L) Close: 153.10

5be418113ffb0CNA_20181108.png

Centrica Plc is inside a rising trend channel on the medium term graph. The stock has taken good support around the 142 area since March this year.
In the graph there is shown this head and shoulders formation under construction. But this formation has little or no meaning at this particular area. Why? As per theory, this formation could be of importance if preceeded by a price rise. This is not the case here. Hence we can overlook it at the moment.
While I write, this stock is up by 0.5 per cent at 9.30 GMT. There is resistance around 164 pounds. A close above that level would be a positive sign and may initiate new buying.
On the downside there is support around 142. A stop-loss can be maintained under that level if the price closes below it.
The stock's monthly average turnover is for over 3000 million pounds, while volatility stands a little under 10 per cent.
Investtech's outlook (one to six months): Buy


FRESNILLO PLC (FRES.L) Close: 902.00

5be418cedfc3aFRES_20181108.png

Fresnillo Plc has been chosen as a positive candidate in the medium term and reacted strongly up.
Recently, Fresnillo Plc broke out through the ceiling of the downtrend channel. For the time being, it is difficult to say anything about the future trend direction, but a sequence of rising tops and bottoms can lead to a change in trend or a new uptrend.
There was initiated a buy signal from a double-bottom formation in the middle of October. The price target from the formation has been met, but the formation indicates that the price may continue to rise if not reversed otherwise.
This recent price move has been supported by high volume, which suggests that buyers have been agressive while sellers were passive. Also the momentum indicator RSI is rising and indicates rising optimism among investors.
Fresnillo Plc has medium term resistance around 1150 pounds or 27 per cent higher than yesterday's close, while downside is 14 per cent below at 770 pounds. More conservative traders can refer to shorter term support and resistance levels as marked in the short term graph. The stock has a monthly average volatility of a little under 14 per cent.
Investtech's outlook (one to six months): Buy


WILLIAM HILL PLC (WMH.L) Close: 194.25

5be418fd5c297WMH_20181108.png

William Hill Plc is traded for over 1200 million pounds on a monthly average basis, with volatility around 11 per cent. WILLIAM HILL PLC has broken the falling trend channel down in the medium term. Falling trends indicate that the company experiences negative development and that buy interest among investors is declining.
Investtech's research done on trends in the Nordic region suggests that stocks that have broken down from the bottom of the falling trend channel, continue to fall in the near term future. For over 4400 samples between 1996 and 2015, such signals have given a negative return of -27.9 percentage points annalized excess return.
Hence this break downwards from the trend channel in William Hill Plc may indicate an even stronger falling rate.
Volume balance and momentum indicators support the downfall.
In the short term there is resistance between 200 and 221 pounds in case of a price reaction on the upside. On the downside there is no clear support on the medium term chart. And the next pivot point as shown in the longer term chart is 156 pounds. The stock is overall assessed as technically negative for the medium term.
Investtech's outlook (one to six months): Sell

The analyses are based on closing price as per November 7, 2018.

Disclaimer: All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.

Original post


Disclaimer:  

Disclaimer: All analyses used herin are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.

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William Hill PLC is a gambling company. The Company's segments include Retail, Online, US, Australia and Other. The Retail segment consists of all activities undertaken in licensed betting offices (LBOs), including gaming machines. The Online segment consists of all online and telephone activity outside of Australia, including sports betting, casino, poker sites and other gaming products along with telephone betting services. The US segment consists of all activities undertaken in the United States. The Australia segment consists of online and telephone sports betting in Australia. Its Other activities include on-course betting and greyhound stadia operations. The Company has a network of approximately 2,370 licensed betting shops across the country. It offers betting on a range of sporting and other events over-the-counter or through self-service betting terminals, and casino-style games on its gaming machines. more »

LSE Price
186.8p
Change
2.2%
Mkt Cap (£m)
1,598
P/E (fwd)
15.5
Yield (fwd)
4.9

Fresnillo plc is a holding company. Through its subsidiaries, the Company is engaged in the mining and beneficiation of non-ferrous minerals, and the sale of related production. The primary contents of this production include silver, gold, lead and zinc. The Company has six operating mines: Fresnillo, located in the State of Zacatecas, which is primary silver mine; Saucito, located in the State of Zacatecas, an underground silver mine; Cienega, located in the State of Durango, an underground gold mine, including the San Ramon satellite mine; Herradura, located in the State of Sonora, a surface gold mine; Soledad-Dipolos mine, located in the State of Sonora, a surface gold mine, and Noche Buena, located in State of Sonora, a surface gold mine. The Company has two development projects, which include Saucito II and San Julian. The Company's subsidiaries include Minera Fresnillo, S.A. de C.V., Minera Penmont, S. de R.L. de C.V., Minera Saucito, S.A. de C.V. and Fresbal Investments, Ltd. more »

LSE Price
998.8p
Change
0.9%
Mkt Cap (£m)
7,298
P/E (fwd)
22.8
Yield (fwd)
2.3

Centrica plc is an energy and services company. The Company's segments include Energy Supply & Services-UK & Ireland, Energy Supply & Services-North America, Connected Home, Distributed Energy & Power, Energy Marketing & Trading, Exploration & Production, Central Power Generation and Centrica Storage. The Energy Supply & Services-UK & Ireland segment includes UK Home, UK Business and Ireland. The Energy Supply & Services-North America segment includes NA Home and NA Business. The Company is engaged in the supply of gas and electricity to residential customers in the United Kingdom, and the installation, repair and maintenance of domestic central heating, plumbing and drains, gas appliances and kitchen appliances, including the provision of fixed-fee maintenance/breakdown service and insurance contracts in the United Kingdom. The Company is engaged in the supply of gas and electricity and provision of energy-related services to business customers in the United Kingdom. more »

LSE Price
121.4p
Change
0.2%
Mkt Cap (£m)
6,902
P/E (fwd)
10.6
Yield (fwd)
9.6



  Is LON:WMH fundamentally strong or weak? Find out More »


4 Posts on this Thread show/hide all

aflash 9th Nov '18 1 of 4
2

This is professional.

I have First Resistance for CNA (Centrica) 156p

and for FRES (Fresnillo) I had 1222p (being Lows Dec 2017 to June) but you made me look closer. There is probably some around 1037p from the Break 'falling off the roof' on July 25.

I hold both.

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mmarkkj777 9th Nov '18 2 of 4
2

Agree with Aflash. A really good report.

I don't use TA on its own myself, but am starting to use it to complement my fundamental and Qualitative assessments.

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JohnEustace 11th Nov '18 3 of 4
2

Thanks for this, very interesting.
One small picky point - the prices are in pence, not pounds.

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Kiran Shroff 14th Nov '18 4 of 4

In reply to post #417884

Thank. Point noted. :)

Investment Research: www.investtech.com
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