Technicals | Aug 18 2020
By Michael Gable
This is the week where we see a large portion of companies report their full year results. So far, there haven't been many disappointments. As we've said before, when you come into reporting season with such low expectations, the likelihood is that we come out the other end with a sense of relief that it wasn't that bad, and that will be a positive catalyst for our market. In terms of the S&P/ASX 200 Index, we still believe that it is setting itself up for another move higher and it is just a matter of time until we start trending again.
In today's report we have researched ResMed ((RMD)).
Although the fall last week was quite sharp, we don't view that as a negative because swift moves after results are part of RMD's personality. The longer-term uptrend is still in place. RMD shares have found support in the last few days on the longer-term trend line and the gap from June. Current levels therefore represent a buying opportunity. If current levels don't hold in the short term, then the next support level is close by at $23. Otherwise, we expect RMD shares to maybe use up a bit more time here and then start trending higher again.
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
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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