Medibank Private Stalled

This story features MEDIBANK PRIVATE LIMITED. For more info SHARE ANALYSIS: MPL

By Michael Gable 

It will be very interesting to see if the rise in our market yesterday – led by a recovery in the major banks, increasing merger and acquisition activity and an improvement in the iron ore price – can be sustained in light of comments late last week from US Federal Reserve chair Janet Yellen indicating that the central bank was poised to raise interest rates this year. This is not a shift in the Fed’s view, but rather an effort by the Fed to alter the market’s expectations regarding the timing of the next move.

In contrast to the performance of the local market, US markets fell on Friday (and were closed yesterday for the Memorial Day holiday) and European stocks fell on Monday, albeit on thin trading volumes.
In this week’s report, we take a look at Medibank Private ((MPL)).

 

We only have about 6 months’ worth of charting to go off but what we can see is that MPL came back to where it listed and then bounced strongly off those levels. However, it appears to be finding some resistance at the most recent downtrend line. A strong break above that line would indicate higher levels. At the moment though price action appears fairly neutral.
 

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Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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