Technicals | Mar 05 2019
By Michael Gable
We have noted a few interesting opportunities, with FlexiGroup ((FXL)), looking particularly interesting.
FXL has been in a downtrend for over five years, falling from levels over $4.50 to under a dollar a month ago. Price action during February has been very interesting and we are possibly seeing the early signs of a reversal of this long-term downtrend. The shares got sold off in early February after the release of a profit downgrade, but recovered strongly intra-day on high volume. They were then able to hold their ground before rallying again during the last several days.
Volume has been massive during this last week and it is telling us that there is a good chance of a low being put in place. There was always going to be a bit of resistance either side of $1.50, but FXL seems to have pushed through it with ease. If we have seen a low, then it means that current prices are a buying opportunity. The first level of major resistance is up near $2.30 – $2.50.
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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
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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