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2018 ISA Picks Update

Posted: 2nd May 2018

Signal Centre’s ISA Picks 2018 – Update

Its almost 2 months since we posted our top 5 picks for ISA’s this year and things have gotten off to a great start.

There was a nostalgic feel to our ISA picks this year, as we have opted for corporate giants that we believe offer a good mix of growth potential alongside impressive levels of income.

We recommended topping up with BP, Diageo, GlaxoSmithKline, Unilever and Vodafone for the 2018 ISA allocation and here is an update of how they are faring.

The chart below is a collective of all 5 stocks on an equal weight basis. We have made reference to the point at where this report was published to offer a visual on the current performance.

Collective Return (assuming all positions purchased in equal size):

Information and pricing correct as of 4:30pm 2 May 2018. Past performance is not a guide for future returns. Entries are taken from the open on the 14 March 2018. All charts are 5-year, weekly setups.

Sources: Tradingview.com & Bloomberg

BP (BP.)

Return (between 14 March – 2nd May):

Technical View: BP has accelerated sharply in recent weeks as the price of oil continues to trade in a bullish sequence. The shares eased past major resistance of 536p, which we highlighted on our original report. The price action is very positive, and we expect to see further upside over the medium to long term. Look for any corrective moves towards 536p to attract further buying interest.

Diageo (DGE)

Return (between 14 March – 2nd May)

Technical View:
Diageo remains within a long term bullish channel. In our report in March we highlighted the price had fallen to the lower end of the channel. There has been a fantastic reaction from this level and the price has moved higher aggressively. The price gapped higher at the beginning of this week (30th April 2018) and looks set to reach higher prices. 

GlaxoSmithKline (GSK)

Return (between 14 March – 2nd May)

Technical View: GlaxoSmithKline continues to trade in a huge range formation. Back in March we highlighted the price had fallen to the lower boundary of the range and that we expected this to attract some buying interest. This has indeed been the case and the price has rallied to roughly the midpoint of the range. Over the medium to long term we expect to see the price challenge the upper end of the range.

Vodafone (VOD)

Return (between 14 March – 2nd May)

Technical View: Vodafone is not typically the most active of shares, but we have seen some exciting price action in the last few weeks. We highlighted the sequence of higher lows and also the range pattern on the long-term charts. We expected some buying interest and have not been let down. We have seen Vodafone rise for 5 consecutive weeks, and while we do not expect to see growth continue at this rate, we do expect the price to reach the previous resistance level seen at around 240p.

Unilever (ULVR)

Return (between 14 March – 2nd May)

Technical View: Unilever is trading in a long-term uptrend which continues to support the price. There was a large and uncharacteristic correction that took place between July17-Feb18 that created some value in the shares for long term holders of shares to take advantage of. For now, the uptrend remains intact and while that remains the case, we expect to see higher prices.