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Transurban: Tentative Upside

Technicals | Nov 05 2019

By Michael Gable 

The S&P 500 Index has consolidated its recent gains as it continues to make new all-time highs, just as we've been anticipating during the last few weeks. Last Friday night we had new PMI numbers out of the US and last night saw their release out of Europe. Both of these are still in contractionary territory. However, the important takeaway is that they have shown improvements compared to the prior month. This means that it could be an early indication that we are seeing a trough in global growth. Remember in our intro last week we highlighted the fact that the flow of funds into certain sectors was trying to sell us something about the global economy?

In terms of stock opportunities this week, we have taken a look at Transurban Group ((TCL)).

For the last couple of months, TCL had been struggling to push beyond $15.00 and the shares were therefore looking weak. They have now managed to get beyond that level, although yesterday's close was a bit soft. There should now be a good chance that it will continue heading higher from here. In terms of downside, we can tolerate a retest of the October low near $14.50, but we wouldn't want to see it head any lower than that.

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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