Day Trader column for May 31 - 2019

We may be seeing the consolidation in our market I mentioned last week as the All Ords has, as of Wednesday pulled back to near 6,500.    We may see further consolidation, but the market is still looking positive and many stocks still continue to hover around support/resistance levels.   

Two of the big four banks had slow pullbacks from their respective downtrend lines over the past week or so, after testing the downtrends on May 25.   The other two have not, as yet reached their downtrend lines but the current market strength may see them testing them in the near future.   The behaviour of the banks indicates to me that we could see them have further gains.   As they form a significant percentage of the index any gains in the banks will add some momentum to the Indices as they move towards the all-time highs.

The portfolio has marked time overall during the past week, although Polynova (PNV) moved up to $1.20 and its trailing stop has been raised to $1.055 which is the spike low formed May 21.   This is the low of the consolidation before the strong move up on Monday.

Kogan.com (KGN) had a sharp fall on Thursday last week but did not break its stop and as of Wednesday had recovered some of the fall.   If it can manage to trade above $6.45 the recent high, then I would expect it to continue to $7.00, the next resistance level.

Fortesque Metals (FMG) also had a sharp fall on May 22 and as of Wednesday this week it was still looking weak, but is still trading above its stop, although I have raised its trailing stop to $8.17 the low formed last Friday.

Rhipe (RHP) has been trading sideways now for two weeks and if it fails to now move above $2.50, it may have run out of puff for the time being.

I bought 5,000 Dubber Corporation (DUB) on May 28 at 99.5c for a total of $4,995 including brokerage.    DUB had been trading sideways between 80c and $1.00 since mid March.   It broke above this trading range on May 22 and then traded in a narrow range for three days on reducing volume prompting me to buy it.    On the day it was purchased it had a strong move up to close at $1.17 which was a pleasant surprise, but it pulled back on Wednesday to close at $1.115.     However, the big volume increase on the day I bought and again on Wednesday tells me it is likely to continue the move up to its next target around $1.50.    Its initial stop 98.5c the spike low formed last Friday.

I also bought 200,000 NVOI Ltd (NVO) on May 28 at 1.6c per share for a total of $3,220.    NVO ran up from .4c in early May to 2.7c on May 07.   It had been slowly pulling back since then on low volume and on May 23 broke the downtrend of the pullback with a decisive move up prompting the buy.

 

 

Two other small cap stocks I am looking at are Greenland Minerals (GGG) and Australian Mines (AUZ).

 

 

 

Past columns, information and DVD’s on my methods are available at:-www.thedaytrader.com.au  

Portfolio Position as at close of trade on May 29 – 2019

 

Stock

No. of Shares

Purchase price

Stop

Wednesday Close

MGX

20,000

62.5c

$1.21

$1.235

RHP

8,000

$1.79

$2.10

$2.36

PNV

10,000

94c

$1.055

$1.20

KGN

1,000

$6.12

$5.79

$5.96

FMG

1,000

$8.25

$7.44

$8.29

DUB

5,000

99.5c

98.5c

$1.115

NVO

200,000

1.6c

1.1c

1.3c

 

Cash       $355,212

Shares    $70,160

Total       $425,372