Technicals | Sep 09 2014
By Michael Gable
There appears to be a lull of company-specific news at the moment, and the overall market is therefore lacking a positive catalyst for the next leg up. The market is drifting down on lower volume, but overall price action isn’t a concern, in our opinion. With some stocks having made some great gains in the last several weeks, it can become a question of whether to lock in a profit or not. This can be hard to do when there doesn’t seem to be an obvious alternative investment to put that money in to.
We take a detailed look at Amcor (AMC).
From its peak in February, AMC tracked sideways for 6 months, finding very good support around $10. The stock then broke higher 3 weeks ago and rallied on strong volume. Shorter term it appears as though the stock is overbought and it may therefore congest here to levels under $11 again. But the trend is looking strong now and the charts suggest that a new high for AMC can be achieved before the end of the year.
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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
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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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