Loving Lovisa

Technicals | Feb 23 2021

This story features LOVISA HOLDINGS LIMITED. For more info SHARE ANALYSIS: LOV

By Michael Gable 

We are into the second half of reporting season, and whilst there have been some good results, we haven't seen a lot of clear follow-through in share prices. Last Friday saw the S&P/ASX 200 Index down more than 100 points at one stage, and this, like the weakness at the end of January, indicates a waning of confidence and momentum in the local market. Overnight in the US, the NASDAQ suffered a noticeable turnaround in fortunes and that may continue to weigh on our market in the short term.

In terms of stocks for this week, our charting commentary has uncovered an opportunity in Lovisa Holdings ((LOV)).

The gap up last Friday was a buying opportunity, as LOV shares opened above their prior trading range and closed on their highs, with strong volume. Yesterday saw it rally again, closing above the prior high from 2019. This price action is very bullish and there is a strong chance that the shares continue to head higher over the next several weeks or so. For an entry point over the next few days, however, it might be best to wait for a retest of $14 instead of chasing it higher from here.

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


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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