Telstra: Next target $5?

Michael Gable

A result on Thursday that is absent of any nasty surprises could see Telstra rally towards our next target of $5. The Telstra chart has been an easy one to read in the last couple of years.

We had been negative on the stock for much of the last few years, but suggested back in April that it should finally bounce at $4. From the peak in 2015, Telstra had fallen in 5 waves. According to Elliott Wave theory, this means that it has finished the downwards move. We also noticed that $4 represented some strong Fibonacci support.

In our commentary for Livewire in April, we forecast a bounce to $4.50. After hitting that number exactly, Telstra then proceeded to pull back. However, Telstra still looks bullish, despite falling back from that $4.50 peak in May. The last few weeks have seen Telstra hold above $4. The strength of this support means that I have been happy to buy back in for clients at these levels.


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dzfb bnv m,

Michael I remember you saying on YMYC you will wait for it to have 'a 3 handle' /'it wasnt too exciting at $4.10'......

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Ted Mulholland

One must be slightly sceptical of statements such as this, particularly as the stock has been denigrated by so many these last few months. Once an advisor chooses to recommend a stock to their clients, it's in their best interest to talk the product up and push the price higher.

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dzfb bnv m,

TLS cuts dividend to 22c / 30% cut ! -how will the market take this news ? will TLS do an ANZ and bounce on the 'bad' dividend news?

Medium screen shot 2016 01 12 at 2.25.34 pm

James Marlay

The cut looks to be larger than brokers were expecting.

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dzfb bnv m,

Michael was right about the '3 handle' on TLS he said it months ago....he just jumped the gun yesterday and put a buy on TLS at $4.30. but then no-one was expecting such a bad result from TLS

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