ResMed’s New Level Of Support

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

The company is included in ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities reports buying the dip remains a valid strategy for ResMed shares above new technical support of $40.

By Michael Gable

By Michael Gable 

News flow from the past week includes some trade deals being agreed between the US and Japan and the US and the EU and a lack of negative news flow has kept US markets crawling along to higher levels.

This week, we have Australian CPI on Wednesday to fill the commentary pages and then on Thursday is the latest US Federal Reserve interest rate decision.

Volatility has been quite low recently, which is why markets have been edging higher, but could we be entering a period of heightened volatility again? 

We offer a technical view on ResMed ((RMD)).

We last looked at the RMD chart on 24 June and noted the breakout and that RMD was “a buy here and it could go on to rally to new highs”.

The stock has now pushed above major resistance and is at new highs (circled).

This is a positive sign for the stock and as long as it can hold above $40, it should be able to continue trending higher.

Any dips back towards $40 are a buying opportunity. However, investors need to bear in mind that RMD reports its next set of results on Thursday afternoon (31 July) – US time.

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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