article 3 months old

Wait For Buying Opportunity In JB Hi-Fi

Technicals | Oct 11 2016

This story features IPH LIMITED, and other companies. For more info SHARE ANALYSIS: IPH

By Michael Gable 

Another week has passed and it can best be described as a boring one with a lack of volatility in Australian and US share markets. Oil is coming up to some short-term resistance here and gold took a dive last week before stabilising a day later. With a few market risks still floating around, it doesn't hurt to hang onto a little gold. Our view is still one of cautiousness for the overall market, but that doesn't mean there are no opportunities around in the smaller end.

Having kept an eye on IPH ((IPH)) and Vocus Communications ((VOC)) for a while, we finally believe now is the time to pick these up at current levels. In today's report we have looked at the chart of JB Hi-Fi ((JBH)).
 


 

JBH is starting to look negative here on the chart. It shot up nicely on the news of the Good Guys acquisition, but since then the market has been unsure what to do with it next. We can see on this weekly chart that any move at or above $30 is just met with selling straight away. We have also seen a couple of sell signals triggered on the RSI (circled). It may not fall straight away, but we would expect a period of consolidation to now occur. The $22 mark seems to be a good level for JBH, so over time we would expect it to head back towards that area instead of heading higher 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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CHARTS

IPH JBH VOC

For more info SHARE ANALYSIS: IPH - IPH LIMITED

For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED

For more info SHARE ANALYSIS: VOC - VOCUS GROUP LIMITED