Seek Set To Run

This story features SEEK LIMITED. For more info SHARE ANALYSIS: SEK

By Michael Gable 

Yesterday saw the ASX200 close at a 6-year high of 5539.9. It quickly brushed off last week’s global jitters and is still set to grind higher into the domestic reporting season, which commences in August. There’s a very interesting chart for Seek ((SEK)), indicating that a big move is just around the corner.
 

When we looked at SEK back in May, it appeared as though it was breaking to the upside. But it couldn’t follow through and instead continued the sideways drift. This is actually making the stock look even more bullish. The previous rally during February saw the stock rally up about $6.50 in the space of 4 weeks. Now, in about four and half months, the stock cannot retrace even half of the move that it made in February. It clearly indicates that the bulls are still in control. The longer that SEK uses up time here, the stronger the move when it eventually breaks to the upside. That is, a break to the upside could see it reach the $20’s in a very short amount of time. So SEK is one worth watching on a daily basis here to ensure we can catch the break as soon as it happens.
 

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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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