JB Hi-Fi Well Supported

This story features JB HI-FI LIMITED. For more info SHARE ANALYSIS: JBH

By Michael Gable 

The markets continue to look bullish here and our focus on stocks benefiting from low interest rates appears to be paying off with the banks performing spectacularly well and a nice market response to yesterday’s interim results from JB Hi-Fi ((JBH)). Despite a couple of negative leads from the US last week, our market has continued to power ahead.

We have the RBA interest rate decision today of course and markets appear to be pricing in another rate cut. Whether that occurs or not we wouldn’t be surprised to see today being a short-term high in the market while they take a much needed breather. Beyond the short-term movements, we still believe that focusing on companies exposed to lower interest rates, lower petrol prices, and a lower Aussie dollar is the key to making profits in 2015. This week we review the chart for JB Hi-Fi.
 

JBH has rallied nicely over the last few weeks and has now reached our first resistance level in the mid $17’s, which explains the intraday price action yesterday. We don’t view the sell-off form the high as a negative because of the fine run that it has had recently and it is most likely due to short-term profit taking. The short covering should continue in the stock and should continue to see it find more support. There is good support at $16.50, so any pullback there would represent a buying opportunity. A closing price above $17.50 would indicate a possible run up towards the high $19’s.
 

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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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