Here are 3 dipping ASX shares now ready to rally

Technical analysis shows the best time to enter a position. Here are a trio of suggestions for the current market.
The post Here are 3 dipping ASX shares now ready to rally appeared first on The Motley Fool Australia. –

Of course, the best way to judge whether an ASX share is a good purchase is to examine the company’s fundamentals and future potential.

But if all those signs are positive, it also helps to buy in at a low price.

This is where a technical analysis of stock price movements can help.

Fairmont Equities managing director Michael Gable is a specialist in this area, helping clients to buy ASX shares at the most advantageous time.

This week he revealed 3 stocks that are looking ripe for buying.

Commonwealth Bank’s ‘false break’

As a post-COVID recovery beneficiary, Commonwealth Bank of Australia (ASX: CBA) shares have risen almost 45% in the past 12 months.

However, the middle of June saw the stock’s rise stall at the $100 mark.

“However, instead of taking the higher probability route by falling away to lower levels, it managed to spend the last several weeks trading sideways in a narrow range instead,” said Gable in a memo to clients.

About a fortnight ago CBA shares dipped below $100 suddenly, but this only lasted a couple of days.

“This break of support a couple of weeks ago is, therefore, a ‘false break’ and that is a powerful sign that strong buying support [still] exists for CBA.”

CBA on Tuesday afternoon traded for $101.37. They are now “pushing to the upside”.

“This is, therefore, another buying opportunity and CBA is likely to continue trending higher from here and should be making new highs shortly.”

CSL’s irresistible dip

CSL Limited (ASX: CSL) hit a 2021 high on 18 June, finishing the day at $305.52.

At the time, Gable warned that the rise would reverse in the short term.

“That dip would be the next buying opportunity before it makes another run towards the old high, near $340,” he said on 22 June.

His words proved to be spot on, as CSL shares hit a trough of $275.15 by mid-July. But the ASX stock has since picked up upwards momentum, trading for $294.04 on Tuesday afternoon.

So now is the buying opportunity that he previously predicted.

“The jump [in] CSL a couple of weeks ago looked bullish and the last several days has merely seen it form a flag as it prepares for the next rally,” Gable said this week.

“It, therefore, looks as though CSL is on the move again here and it is likely to make an attempt to break the June high. That would be another buying opportunity.”

This ASX share is ‘ready to rally’

Online luxury goods retailer Cettire Ltd (ASX: CTT) was the darling of the ASX in the first half of the year. But its shares tumbled sharply in June, only to peak again by the end of that month.

The stock started July at $2.77 but on Tuesday afternoon traded at $2.28.

Gable reckons Cettire is “ready to rally again from here”.

“The fall in the share price since the July retest has been a lot slower than the June decline. We have also seen it level out near the June low and then bounce off it, which is a positive,” he said.

“A break of the June high would be the next buy signal.” 

According to Gable, it’s imperative Cettire shares keep their head above $2, to prevent a medium-term malaise.

“Current levels provide a good risk/reward opportunity.”

The post Here are 3 dipping ASX shares now ready to rally appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

5 things to watch on the ASX 200 on Wednesday

2 excellent ASX 200 healthcare shares named as buys

Leading broker slaps $89 target on CBA (ASX:CBA) share price
CBA (ASX:CBA) share price lifts amid soaring property prices
Is it a good time now to buy CSL (ASX:CSL) shares?

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and Cettire Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!