Buying Opportunity In Oil Search

This story features MAGELLAN FINANCIAL GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: MFG

By Michael Gable 

In our last report we spoke of the market probably wanting to retest the strong support around 5200 and we should well and truly do that today. Possibly as low as 5150 very briefly. There are a couple of things to make people nervous here, Chinese PMI and US tapering, but we’ve known about tapering for a while. There are also plenty of positives too. The US economy (by far the largest in the world) is still improving, with very low inflation, and interest rates still at a record low. The uptrend for our markets is still intact which means that we are still in a “buy the dips” environment, not a “sell the rallies” situation. After tipping Magellan Financial Group ((MFG)) two weeks (which is still doing very well compared to the broader market), we also provide an updated look at Macquarie Group ((MQG)) on where we believe it is heading. There are also some good opportunities we believe in McMillan Shakespeare ((MMS)) and Beach Energy ((BPT)). On the shorting side, the chart for DuluxGroup ((DLX)) is worth looking at also.

Oil Search ((OSH))
 

 

Oil Search has made a double top here within its recent downtrend (indicated by the arrows). This is telling us to expect some short term weakness in the stock. Support exists at $8, but if that cannot hold, then investors should expect to see the stock fall to strong support at $7.60. As long as $7.60 holds, then we have a good buying opportunity with OSH – rewarding those with a bit of patience here.
 

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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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