Technicals | Aug 02 2016
By Michael Gable
As we write this, the chances of an RBA rate cut today sit at 75%, so that is the main news item for this week. Reporting season is slowly kicking off.
Today we take a look at Capilano Honey (CZZ)).
For the last year, CZZ has been forming an ascending triangle. This continuation pattern will normally see a break to the upside to continue the previous uptrend from a few years ago. We can see price action tightening up now so the previous dip to support under $20 may be the last time we see it down there. We expect CZZ to make a move back towards resistance just over $22. If it breaks out of that, then it should resume the uptrend and could make a move equal to the base of the triangle. That implies possible levels as high as $28.
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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
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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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