Opportunity In Hansen Technologies

This story features HANSEN TECHNOLOGIES LIMITED. For more info SHARE ANALYSIS: HSN

By Michael Gable 

This week promises to be a little boring with the main item of interest being the quarterly survey of business spending plans on Thursday. We have seen momentum and volume ease out of the market the last couple of weeks and this lack of excitement will further add to the likelihood of the Australian market drifting south here for the time being. One way to capture a profit from the downside is to purchase an ETF called BBOZ. It moves in the opposite direction to the market but with some internal leverage. That means that a 1% move in the market will cause BBOZ to move greater than 2%, but in the opposite direction. If we expect the market to cool off about 5%, then there could be gains to be made.

Other than that we have looked at Hansen Technologies ((HSN)) for this week which could provide us with a great opportunity on a dip.
 

 

HSN has been in an uptrend for 10 years now. Most recently, the stock has been chopping around the mid $3's and we can see a possible "head and shoulders" forming on the chart. This means that we could see HSN drift back towards support near $3.30, and if that gets broken, then it is likely to fall back towards $3. That $3 mark also happens to be the trend line for the last few years. There is also good support near $3, and a 3-wave decline from the April high also measures down near $3. So, it is worth watching HSN here and a move to the low $3 area would be the ideal buying opportunity.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
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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