Bank Of Queensland Looking Bullish

This story features BANK OF QUEENSLAND LIMITED. For more info SHARE ANALYSIS: BOQ

By Michael Gable 

After being down for 5 consecutive days, the Dow Jones rallied overnight on low volume. The bearish tone for the short term is still set in our opinion and the trend for the Australian market in the next few weeks is to the downside, to the point where better opportunities will present themselves. One development catching our eye is the direction of interest rates. The cash rate in New Zealand was increased last week by 0.25%. Yesterday saw Bill Evans from Westpac change their stance on interest rates from that of an easing bias. His is now predicting that rates will be on hold for the time being and the next move will be an increase. This will clearly have ramifications for stocks that have been used as a proxy for bonds, that is the appeal of the high yielding stocks will diminish somewhat. In terms of the banks, the yield is still dependable and attractive, but it will be interesting to see how valuations change over the year. On that note, we take a brief look at this while covering Bank of Queensland ((BOQ)) in more detail in today’s report. 

Bank of Queensland

We had a look at the BOQ chart as recently as 18 February when it was trading at $12.04, and we commented that “conservative investors would like to see the previous swing high around $12.50 to be penetrated first before entering this trade. But if it does, it should go to a new high. First level of resistance around $13, but beyond that it can run towards just over $14.” It has now gone through that previous swing high and broken out of the recent downtrend. It is looking very bullish here so after cooling off in the short term, we should see BOQ at some point in the next few weeks run up towards $13 and potentially hit that $14 target, provided that markets overall behave themselves.?
 

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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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