The Regional Bank Alternative

This story features BENDIGO & ADELAIDE BANK LIMITED. For more info SHARE ANALYSIS: BEN

By Michael Gable 

Having spent most of this month trending downwards, the Australian market jumped up last week in response to news that the US may prolong the date of their first rate rise. The Dow Jones welcomed news that the US economy needed more time with lower rates but the Dow Jones has been unable to follow through on that initial enthusiasm. The Australian market (ASX200) has also had a second attempt to trade through the round number of 6000, failing to do so once again. We may have witnessed the completion of a “b” wave which essentially means that the next move down is back towards our targeted support of 5650. That is where we believe the market will launch another rally to punch through the 6000 level.

Today we look at Bendigo & Adelaide Bank ((BEN)).
 

Unlike the big 4 banks (ex CBA), BEN continued to trend higher throughout 2014. The recent sell-off looks dramatic on a smaller time scale but on a longer timeframe, we can see that the uptrend is still well and truly intact. There is a possibility of a dip back towards $12.50 again but clearly the downside is limited. Where most of the other banks are looking very overbought as measured by the momentum indicators, BEN has just moved out of being oversold so is likely to outperform the other banks over the next few months as it finds support and continues to grind higher.
 

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)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

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

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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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