Technicals | Jun 01 2021
This story features BEGA CHEESE LIMITED. For more info SHARE ANALYSIS: BGA
By Michael Gable
The S&P/ASX 200 Index broke to a new high three weeks ago, before easing back. It then made a new high on Friday, before easing back again. It seems a little unsure of itself and is definitely lacking the swagger of the US market. With US share markets closed overnight, it is unlikely to do much today. However, the fact that markets have had ample opportunity these last few months to sell down, ranging from inflationary fears to "sell in May" superstitions, it leaves us reasonably confident that it should generally grind higher from here.
Under the surface though, there hasn't been a lot of follow-through on individual stocks. A look at the very low number of stocks trading above their 20-day moving average is proof of this. However, if we were to try and identify any themes or areas to be invested in, we continue to maintain that cyclical stocks such as resources, banks, and consumer discretionary are the areas to be exposed to. On the back of this, this week we've looked at Bega Cheese ((BGA)).
In late January, BGA broke out of an ascending triangle and rallied from about $5.50 to $6.50. It has since eased back and towards the uptrend line. Yesterday's strong move higher could be a sign that good support is coming back in here and BGA is now ready to resume the uptrend. Current levels are therefore a buying opportunity with initial stops to be considered just under the uptrend line.
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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