Macquarie Group Preparing For A New High?

This story features MACQUARIE GROUP LIMITED. For more info SHARE ANALYSIS: MQG

The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

After a period of consolidation, sellers are being met with equal buying pressure which suggests to Fairmont Equities' Michael Gable the stock is readying itself for a rally to a new high.

By Michael Gable 

The major news from the past week was concerning US inflation.

We had the latest US PPI figures which saw year on year growth of 2.8%, much less than expectations of 3.5%.

This is often thought of as a leading indicator because the US Federal Bureau of Labor Statistics takes a sample of selling prices by domestic producers.

The official CPI then came out a day later at 2.9%, which was in line. Either way, it highlights the fact that inflation in the US is under control for now.

We are not seeing massive increases because of tariffs. This means that interest rates should come down, and this is a positive for markets.

It is also a negative for the US dollar, which in turn is a positive for gold and other commodities. 

Today, we offer a technical view on Macquarie Group ((MQG))

After rallying off the April low, Macquarie Group shares hit a wall near $230, which was short of the recent high near $240.

Since late June, it has traded sideways in what now appears to be a tightening range.

Consolidating like this under the old high is a positive sign as it means that although investors are exiting up here, they are being met by equal buying pressure.

Once this selling pressure is gone, Macquarie will be able to rally strongly to a new high.

Macquarie is a Buy here, but more conservative investors may wait for a break above $230.

A dip under $210 would be a negative.

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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