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Qantas: Just Watch For Now

Technicals | Oct 05 2021

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

By Michael Gable 

We still believe that here is more risk to the downside, than upside, for the Australian market. There appears to be good support around 7200 for the S&P/ASX200 Index and that appears to be the line in the sand that could bring on the panic selling – which we haven't seen yet. Having said that, there are some interesting stocks to look at. In today's report we have a chart on Qantas Airways ((QAN)).

However, it goes without saying that while the index looks negative, any buying decisions carry added risk. If you choose to buy something right now, you need to respect support levels and obey risk management more than ever. Once the index is on solid footing again, then we will have plenty of higher probability set-ups to share with you.

QAN staged a breakout and a retest of the diagonal trendline in early September. It then went on to retest the November peak, pushing above it yesterday. However, with the stock closing on its lows and a chance of it dipping back under that line today, we remain neutral to see how the share price reacts here.

If QAN can hold on around these levels and then make a solid close above yesterday's peak, then we can treat that as the next buying opportunity. For the moment, it is one for the watchlist.

Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of  Fairmont Equities (

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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