Low Seen For ANZ?

This story features ANZ GROUP HOLDINGS LIMITED. For more info SHARE ANALYSIS: ANZ

By Michael Gable 

Our commentary last week still holds true. That is, as investors we need to look beyond the current issues with Greece and be prepared to find opportunities once it subsides. Despite the weekend’s “no” vote in Greece, markets held up surprisingly well, as did bonds, and volumes were fairly light. There appears to be early signs that markets are getting over it. There won’t be an announcement that the market has bottomed, we just need to patiently watch the price action and let that guide us. Having said that, we still believe that the majority of the downside movement is over.

Today we look at ANZ Bank ((ANZ)).

 

ANZ appears to be forming an inverse head and shoulders pattern which implies that we are seeing a low develop in the share price. Technically it is not a head and shoulders until it breaches the neckline, which is indicated by the horizontal line. Assuming that ANZ does not fall under the June low, if it can get above this neckline, then the charts suggest it could rally towards $36 before hitting any resistance. We have also circled the two other occasions in the last 12 months where ANZ has reversed with this same pattern, showing that it appears to be a “characteristic” of ANZ.

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.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms