Author: Kenley Scott

Kenley Scott is a senior equity analyst and sector strategist covering the APAC region and the Energy sector. He is a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Kenley also writes the Global Sector Summary, part of the Sector Strategy service, which identifies emerging sector strength and weakness across 46 countries every week. After working as a commodities broker, Kenley joined the firm in July 2006. He has a B.S. in Statistics from the University of California, Riverside and also holds a Series 65 securities license.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Sarda Energy & Minerals (RIA.IN, $2.3B market cap; $12.5M ADV)

 

TECHNICALS

  • The stock broke out of a stage-one 19-week consolidation base and is actionable. Support is near its 10-DMA (-1%) followed by its 21-DMA (-3%).
  • Good Fundamental Profile: EPS Rank of 81 and best-in-class SMR Rating of A.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Shaily Engineering Plastics (LYE.IN; SHEP IN; $1.1B market cap)

 

TECHNICALS

  • Buy as the stock broke out of an 11-week, stage-three cup base, with a pivot of INR 2,074. Heavy volume on the right side of the base and on the breakout.
  • Best-in-class Composite Rating 99 and SMR Rating of A. Margins and ROE have doubled over the last three years. High EPS Rank of 96, driven by solid earnings CAGR (>50%) over the past three years. Strong earnings estimates for the next two years.
  • Technical profile remains stellar, with a high Up/Down Volume ratio of 3.1 and the best possible Acc/Dist Rating of A+. A high RS Rating of 92, with the RS line in an uptrend, indicates the stock is sharply outperforming the broader market.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

InterGlobe Aviation (VGA.IN; INDOGO IN; $27B market cap)

 

TECHNICALS

  • The stock is trading in the pivot range of INR 6,018–6,319 after breaking out of a stage-one six-week flat base.
  • Good SMR Rating of B and high Composite Rating of 86. EPS Rank 30 is expected to improve, given the double-digit earnings growth estimates for the next two years.
  • Strong technical ratings: Up/Down Volume ratio of 1.4 and an Acc/Dist Rating of A. RS line is at an all-time high and is trending upward. High RS Rating of 88 indicates the stock’s outperformance relative to the index.

 

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Triple Flag Precious Metals (TFPM, $5.4B market cap)

 

TECHNICALS

  • The stock gapped up and broke out of a stage-two flat base with a pivot of $25.45 and is actionable.
  • Near-best fundamental profile with a high EPS rank 98 and the best possible SMR rating of A, driven mainly by margin expansion and accelerating sales growth. High Composite rating of 98. Double-digit earnings growth estimates for FY25. Earnings and sales grew at more than 25% CAGR over the last five years.
  • Up/Down Volume ratio of 1.7 and the Acc/Dist Rating of C is expected to improve with today’s strong technical action. RS line is trending upward with a high RS rating of 91. Industry Group Rank of 7 indicate high investor interest in the group.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Nippon Paint Holdings (NPPT.JP; 4612 JP) – $21B market cap; $26M ADV

 

TECHNICALS

  • The stock bounced off its 10-DMA and broke out of a stage-one 37-week consolidation base. It is 2% off its 52-week high with immediate support near its rising 21-DMA (-2%).
  • The stock has been under accumulation for the past six, indicating a healthy money inflow. Up/Down Volume Ratio of 1.1 is constructive, indicating positive demand for the stock. The Group Rank has also improved sharply to 14 from 105, reflecting increased investor interest. RS line is trending upwards and is near its 52-week high, with an RS Rating of 80.
  • Strong Fundamental Profile: EPS Rank of 90 and SMR Rating of B. It has strong double-digit FY25 EPS growth estimates.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setup

Time Technoplast (ETE.IN, TIME IN, $1.2B market cap)

 

TECHNICALS

  • The stock is trading in the pivot range after breaking out of a stage-one cup-with-handle base with a pivot of INR 455.
  • Near-best fundamental ratings with a strong EPS Rank 98 and the best-possible SMR Rating of A. Strong double-digit growth estimates for the next two years. High Composite Rating of 97. Earnings grew at a CAGR of 127% over the last five years with sales growing at 62% in the same period.
  • Decent money flows with an Acc/Dist Rating of B-. RS line is recovering from April lows and is in an uptrend. Strong RS Rating of 86.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Technical Setups

Hyundai Glovis (GLV.KR) – $8B market cap; $25M ADV

 

TECHNICALS

  • The stock broke out of a stage-two 22-week cup-with-handle base and is actionable. It is 5% off its 52-week high with support at its rising 10-DMA (-1%), followed by its 21-DMA (-4%).
  • The stock has been under accumulation for the past two months, indicating a healthy money inflow. Up/Down Volume ratio of 1.5 is constructive, indicating positive demand for the stock. The Group Rank has also improved sharply to 82 from 137, reflecting increased investor interest. RS line has also bounced off its recent lows and is trending upward, with an RS Rating of 75.

O’Neil Energy/Material Weekly

Posted on by Kenley Scott

Chart of the Week

Airline stocks surged after better-than expected Q2 earnings results from DAL/UAL. Also, DAL reinstated it’s full-year 2025 guidance, expecting $5.25-6.25 in earnings, which is 6% ahead of consensus at the midpoint. The airlines ETF (JETS) rose to a 5-month high and to within 7% of 4-year highs after having been down as much as 37% from highs in April.