Monadelphous Looking Toppy

This story features MONADELPHOUS GROUP LIMITED. For more info SHARE ANALYSIS: MND

By Michael Gable 

The ASX/S&P 200 Index continues to move above and below that 6000 level, and that is what everyone is focusing on. However, it has generally traded on top of the previous high this year which was formed on 1 May. That is the important level to watch. As the market establishes a baseline above a previous high, it will have the ability to launch higher.

This week's report covers Monadelphous Group ((MND)).

MND has had a great run in the last couple of years. We are seeing signs that it might just take a breather though. Last week was a negative week, forming a candlestick pattern known as a "dark cloud cover" (circled). Last week's volume on the sell-off was also twice the average for the last year. This leads us to believe that MND should weaken from here. There is some trendline support just under $18, which isn't too far away, hence the neutral stance. But if that breaks, then we are looking at a slide towards to low $16's.

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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