Computershare In Uptrend

This story features COMPUTERSHARE LIMITED. For more info SHARE ANALYSIS: CPU

By Michael Gable 

The S&P/ASX 200 Index suffered a deep fall last Thursday, closing at its lowest level since February. It now appears as though the Index itself is starting to break down from the recent trading range. As we've been saying since the market peaked on 1 May, there are still opportunities in stocks below the top 20, despite the top 20 leading the market lower for the time being. Today's report takes a technical look at Computershare ((CPU)),

The other thing worth highlighting is the trend in the gold price. After breaking out a few weeks ago, it has now eased back to that breakout zone near US$1290/ounce and then found support. That, quite simply, is a buy signal.
 

CPU has done remarkably well in the last year and it seems poised to resume that uptrend. After peaking in May, the shares eased back in a flag formation, sitting on top of the 2015 high. After testing that level a few times in the last month, they have now bounced off that and the shares now look like breaking above the flag. This means that as long as CPU can hold here, it should be able to resume the uptrend and head to a new high.
 

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)

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

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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