ResMed To Stall

This story features RESMED INC. For more info SHARE ANALYSIS: RMD

By Michael Gable 

The market has drifted sideways in the last several days as the January rally starts to consolidate. Resources have done extremely well while banks have been sold down. We may see some consolidation in the bigger resource stocks, even though longer term they remain promising. The banks may find a little bit of buying support now, but we question whether there is much upside here beyond the next few days. In terms of this week's report, we look at  ResMed ((RMD)).

When RMD got sold down a couple of weeks ago, it left a large bearish engulfing pattern (circled) on the weekly chart. Since then it has fallen towards trend-line support. Current prices also represent a 38.2% retracement of the 2016 – 2019 rally. So, current levels should offer some support for RMD. However, the severity of the recent sell-down means that the stock is unlikely to make much progress in the short term. We may see it spend several weeks or so around these levels before it is ready to head higher. Strong resistance will come in near $14. If current support levels fail, then the next support zone is just under $12.

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.
 

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms