Qantas Set For Takeoff

This story features QANTAS AIRWAYS LIMITED. For more info SHARE ANALYSIS: QAN

By Michael Gable 

Share markets have risen strongly in the last few weeks and we continue to be bullish on their near-term prospects. The S&P 500 Index has recovered half of its losses now and we will have to see if that causes it to consolidate here; or if this momentum we are seeing will make it edge even higher. Longer-term though, there are still some great levels to be found here on quality stocks.

News of the US Federal Reserve stepping in to the tune of US$2.3 trillion helped share markets head higher at the end of last week. It once again has raised questions as to why the share market is rallying when a record number of people are losing jobs and everything in the world looks so bad. Unfortunately, that widespread rationale is from people who don't get share markets. This is not the place to explain how share markets work, but let us just say that markets won't wait for everything to fall into place before heading higher. Investing is all about risk/reward. If you wait until there is no risk, then you will have no reward. Try to eliminate risk completely and sit in cash, and you actually end up going backwards over time. We continue to believe that you can make the most of opportunities down here, in a calculated way.

Today's report analyses the chart of Qantas Airways ((QAN)).

After losing a massive amount of value during February – March, QAN bounced higher a few weeks ago from about $2.00 to $3.50. It then spent the last couple of weeks trading sideways in the form of a symmetrical triangle. This consolidation was very interesting to see and last Thursday we finally saw QAN gap higher and break free (circled). We should now see QAN rally from here. Strong resistance will come in near $5.30. Traders should consider stops back near support at $3.00.

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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