Flight Centre: Worst Now Behind

This story features FLIGHT CENTRE TRAVEL GROUP LIMITED. For more info SHARE ANALYSIS: FLT

By MichaelGable

The Nasdaq continues to look weak, yet overnight we saw new highs for the Dow Jones. We therefore continue to view the Australian share market as having more "risk" in the short-term as these events play out. Whether it is as simple as ditching high P/E stocks for those on lower P/E's remains to be seen. If the Nasdaq weakness continues, then it is bound to have some sort of effect on the broader market. This means that cautiousness is still advised at this stage. Longer-term, however, we remain positive on the prospects for the Australian market.

In this week's research, we have analysed Flight Centre Travel Group ((FLT)?The NASDAQ continues to look weak, yet overnight we saw new highs for the Dow Jones. We therefore continue to view the Australian share market as having more "risk" in the short-term as these events play out. Whether it is as simple as ditching high P/E stocks for those on lower P/E's remains to be seen. If the NASDAQ weakness continues, then it is bound to have some sort of effect on the broader market. This means that cautiousness is still advised at this stage. Longer-term, however, we remain positive on the prospects for the Australian market.

In this week's research, we have analysed Flight Centre Travel Group ((FLT)).

In late January we saw FLT break major support just under $15. The next line under that was near $11, but the stock managed to spend most of February trading sideways instead, which was an encouraging sign. Then in late February, it rallied higher. The last couple of weeks has seen it congest here in the shape of a bull flag. The worst appears behind it now for FLT and it seems to be preparing to commence an uptrend again. A strong move above $18 would be a clear signal that it is starting the next rally.

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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