A top pick to buy into further weakness
We are currently cashed up, and even holding short exposure which feels right given the recent market volatility. However, the pullback has caused some green shoots to pop up - a number of stocks are starting to look interesting as the broader index softens. Our report on Friday morning outlined 5 stocks we have on our radar.
1. Western Areas (WSA) $3.07
Nickel name Western Areas saw it's share price add more than 70% between July and September before the volatility put the brakes on the rally. Nickel has seen stockpiles plummet with global supply disruptions, and with Indonesia set to ban ore exports, these disruptions look set to continue. Equities had followed the commodity higher however, they have pulled back from recent highs in both cases.
We like the stock and nickel exposure, especially if we see an eventual resolution / improvement in US-China trade. We see any decent dip under $3 as appealing from a risk / reward perspective to at least start building a position.
MM likes WSA below $3, only a few percent lower.
Western Areas (WSA) Chart
To find out more take a free trial today here.
