article 3 months old

Rebound For Sirtex

Technicals | Dec 13 2016

By Michael Gable 

The S&P/ASX 200 Index continues to grind higher and it was nice to see some midcap names join the party a little last week. As highlighted last week, stocks that trade at a premium to market are still not seeing much buying yet. The focus continues to be on the cyclical names. This week we have had a look at the Sirtex Medical ((SRX)) chart after last week's fall.
 


 

SRX may move around here, so we will be neutral for now, but if it can hold these levels then we would expect a rally and then we can turn positive. Firstly, it seems to have made a large 3-wave flat correction since hitting that high in early 2015. When SRX managed to retest that high later in the year and slightly surpass it, it then encountered some selling. What we have now seen is SRX go to a marginally new high and then fail, and last week has seen it go to a marginally new low (circled on the chart and indicated by exceeding the horizontal lines). This means that the downside target has possibly been achieved and SRX may well go on to rally again from here.
 

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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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