Amcor Ready To Move Higher

This story features QBE INSURANCE GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: QBE

By Michael Gable 

The markets have continued to drift back over the last week but it is not doing so in a way that would make us concerned. Yesterday’s release of data on inflation sent our market ducking for cover but if anything that represents a buying opportunity for particularly bullish names such as QBE Insurance ((QBE)), Rio Tinto ((RIO)), and Santos ((STO)). The latter we covered in our report today as a fresh buying opportunity. The last 5 weeks have been great for our new model portfolio so today we took the opportunity to write a special report on the importance of understanding the top 20 stocks in the Australian market. They make up such a large percentage of the top 200 which means that if you also want to outperform the index, you need to understand the top 20 stocks like the back of your hand. Reflecting this, we introduced Amcor ((AMC)) to our portfolio.
 

Amcor

 

The share price of Amcor has been steadily increasing since the lows in 2009. Since the middle of this year, AMC has been taking a breather from this multi-year uptrend. You will notice on this weekly chart that the price has been drifting back slightly within a clearly defined channel. In November we have seen the price break out to the topside of this channel and spend the last few weeks retesting this upper limit. So it appears as though AMC has finished correcting against the multi-year uptrend and is ready to resume the move up. At this rate, we would expect an eventual move up towards $12 over a 6 month period.
 

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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

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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