Technicals | Aug 22 2017
By Michael Gable
We enter another busy week of reporting season with BHP reporting today and Qantas (QAN) later this week. The overall market continues to be range bound and so far, it is hard to see enough "beats" during reporting season to warrant the Australian market trading higher. Risk still remains to the downside. Not only does downside risk remain for the Australian market, but the US markets are now the weakest that they've been all year.
In today's report, we go through the fundamentals of Class ((CL1)).
The price action for CL1 is very interesting. It rallied strongly in February for a few days and has just gone sideways since then. It has managed to stay well above the February lows, which is a positive sign. The stock is therefore just using up some time here, and the longer it does that, the bigger the move on a breakout. If the stock pushes through resistance (the upper blue line), then this "breakout" should be followed by investors, and the stock could make a quick rally up towards $3.60. Other than that, a drift back towards support near $2.80 would also be a buying opportunity.
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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
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
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Disclaimer
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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