Echo Worth A Punt

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

By Michael Gable 

Markets continue to fail to trade much higher. We are still looking at support levels around 5230 and then possibly 5080 for the ASX 200 before we would change our cautious stance. With David Jones receiving a takeover offer (we tipped it in February to hit $4), our JB Hi-Fi ((JBH)) recommendation from last week appears to be doing well as it basks in DJ’s takeover glory. That is one stock worth looking at on any dip. In this week’s report, we uncover an opportunity in Echo Entertainment Group ((EGP)).
 

Echo Entertainment

Echo had taken a tumble in the last two years but we can see that since about November last year, it has been base building. During that time we have seen the Relative Strength Index (RSI) climb from an oversold condition. While the price was building a base, the momentum as measured by the RSI, was heading higher. It has culminated in a breakout in the EGP share price last week. This current level around $2.80 appears to be a bit of an obstacle, so if EGP can clear that, then the next levels of resistance are around $3.00 and then major resistance at $3.40.
 

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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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