ANZ Pullback To Continue

This story features ANZ GROUP HOLDINGS LIMITED. For more info SHARE ANALYSIS: ANZ

By Michael Gable 

In the last week we have seen half year results from ANZ Bank ((ANZ)) and Westpac (WBC). Despite the record results, the market took the opportunity to sell off the banks instead. We can add “picking the top in the banks” to the list of popular Australian past times. So we will join in and, in the case of ANZ, show you were we think it is going to head over the next several weeks. Just like in November last year, the big four ex-CBA will present an opportunity to generate an “extra divided” by writing covered calls here.

ANZ Bank

 

The recent top of ANZ was met with a “3 black crows” formation (circled on the chart). This is a negative sign and is indicates a top in the share price. We cannot say that the longer term trend is over, but it makes it clear that over the next several weeks at the very least, ANZ should correct back to cheaper levels. The stock will go ex-divided on 9 May for 83c. The stock may have small bounce in the next day or two before then. That would be an opportunity to write a covered call as we then expect the shares to slide into support at $32.50. If that breaks, then the next level of support is down at $31.75.
 

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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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