Bullish Pattern Persists For Sirtex

This story features SIERRA RUTILE HOLDINGS LIMITED. For more info SHARE ANALYSIS: SRX

By Michael Gable 

As previewed in last week’s report, we could see evidence of why our market would rally when the Australian dollar stabilises. As the A$ trended higher all last week, our market managed to string together a positive result for 5 days in a row. At time of writing, our futures are pointing higher so we may see another day up today to add to the winning streak. From the close of Monday last week, our market has rallied nearly 164 points. This is despite the wild gyrations seen in overseas markets where at one stage the Dow Jones was down more than 400 points in a single session.

As flagged earlier, the banks have found some good support here leading into November’s dividend. For example, looking at ANZ which is in our model portfolio, so far for the month of October, it is up about 4.9 per cent, compared to the ASX200 which is down 0.5 per cent. Our market will most likely do two things here. It will either hit 5400 – 5450 very quickly before retesting last week’s low, or it will meander around at these levels, frustrating everyone with a lack of direction for several weeks before finally making a decision.

Today we take a look at Sirtex Medical ((SRX)).
 

The chart may not seem spectacular at first glance so it is easy to miss the fact that SRX has doubled in price over the course of this year. It looks uneventful because the trend is sustainable. The share price will rally strongly for a short period of time and then undergo a fairly flat correction for a longer period of time as it absorbs the recent rally. This is very bullish. Once again SRX has spent the last several weeks drifting sideways before finally breaking clear of this last week. At the moment it is not going anywhere in a hurry, but provided that it can stay above this downtrend line, we would expect to see at least a few dollars upside from here.

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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