Warning Signals For Suncorp

This story features SUNCORP GROUP LIMITED. For more info SHARE ANALYSIS: SUN

By Michael Gable 

With the RBA not cutting rates last week, the market sold off in a similar fashion to when they kept rates unchanged in March. The next day however saw the market continue to edge higher, once again trying to get through that elusive 6000 mark yesterday. Whilst it is struggling to go higher, it has started to show a little more resilience now. Unless we at least get a weekly close above 6000, it still should remain subdued. 

Today we look at Suncorp Group ((SUN)), which is throwing up some warning signs on the chart that investors should take note of.

 

Suncorp now looks as though it has made a “head and shoulders” pattern at the top of its recent uptrend. This pattern is a reversal signal. On the chart, the middle peak under the arrow is the “head” and the two arrows below it and either side are the “shoulders”. The neckline is indicated by the blue line. We can see that it has now breached that neckline, retested it, and is most likely due to head to our target near $12.25. The other factor that makes this look negative is the large amount of volume that has been seen on the downside over the last several weeks.

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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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