Orora Lights Up

This story features ORORA LIMITED. For more info SHARE ANALYSIS: ORA

By Michael Gable 

Our market continues to push higher as we foreshadowed over the last couple of weeks. The target we gave last week of about 5350 is still within reach, despite the odd down day or so along the way. If our market can do a retest under 5100 over the next week and find support, then that would be a second chance entry point for a run up to 5350. Much of the rally has been due to short covering, so our tip is to make hay while the sun shines but don't get too confident as we push towards that target level.

Nimbleness, individual stock picking, and the ability to be happy taking a profit means that you can probably do very well.

In our opinion this is the best way to deal with a difficult market. Take the profits on a stock that gets expensive and hits resistance, and then move on. Blending fundamental and technical analysis gives us the best chance to do this. You won't get it right all of the time, but most of the time, and that's what matters. We are now seeing breakouts in other stocks we like such as Orora ((ORA)).
 

Our comment on 23 February noted the resistance at $2.40 and mentioned "we would be looking for a weekly close above that level to confirm further upside where we can project a target towards $2.80." Last week saw ORA have a bullish close above that level so we would now look towards that $2.80 target. A weekly close under the $2.40 level, which is now support, would make our view turn 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)

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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