Breakout Looming For G8

This story features G8 EDUCATION LIMITED. For more info SHARE ANALYSIS: GEM

By Michael Gable 

The Australian market has managed to string together a few positive days to see it potentially break above the recent trading range. With the May peak only 100 points away for the S&P/ASX 200, it will encounter plenty of resistance in the next few days. The overall picture still remains cloudy but finding opportunities in the mid cap space continues to be very fruitful. Because of this, it is where investors have been finding some great performance since the market peaked in May.

The strategy of concentrating on individual stocks instead of the overall market has never been truer. The chest-beating that we saw earlier in the year from the passive investors has indeed died down. This week we look at G8 Education ((GEM)).
 

GEM has spent much of the last two years in a large trading range between about $3 and $4.15. It now looks like the stock is breaking out here (circled). If it can hold above the breakout zone, then we could be seeing GEM move into a new trading range where the upper limit would be near $5.30.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

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

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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