Upside For Brambles

This story features BRAMBLES LIMITED. For more info SHARE ANALYSIS: BXB

By Michael Gable 

The big story this week has been the slide in the Australian dollar. Yesterday saw it dip under US90c. A softer dollar will ultimately be beneficial for our exporters, but with such a large percentage of our market being foreign owned, a dollar that is still sliding will hold back the foreign buying. The overall market therefore might find it hard to bounce very hard from here. We believe that the downside is limited in the market, but the upside might also be hard work for the time being. So, the market overall may just tread water here. The other big news overnight is the bounce in the spot price of iron ore by nearly 4%. That should see our miners move from being well supported to actually heading higher again.

In this week’s report, our detailed analysis is on Brambles ((BXB)).
 

Our last update on the BXB chart was on 1 July 2014, when we noted that it had gone to the bottom of its range and that it should head higher again. As you can see on this chart, it has been moving higher again in a trend that is looking fairly sustainable. As a result, BXB is on course to head back to the high $9’s.

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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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