Buying Opportunity In BlueScope

Technicals | Apr 02 2019

By Michael Gable 

The Australian market was looking a bit soft last week as everyone seemed to get worked up over yield curve inversions. The last couple of days has shown that the fear didn’t last too long and markets are looking bit more buoyant again. Our view is that the current movements in bonds is getting blown out of proportion. Good data out of China confirms our view that growth will keep humming along, which is why one of our favourite sectors, the resource sector, is turning around here and heading higher again.

This week’s report takes a look at an updated chart for Bluescope Steel ((BSL)).

Our recent comment on BSL was on 26 February, where we expected it to rally higher. Initially it went above $14.00 before stalling during the last few weeks. Price action in the last few weeks has been tightly contained above the important $13.00 level. It now looks like BSL is breaking free of this short-term range and it should now continue its march higher. Resistance is in the mid $15’s and then higher up near $17.00. Current levels still represent a buying opportunity.

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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CHARTS

BSL