Ramsay Healthcare On The Move

This story features RAMSAY HEALTH CARE LIMITED. For more info SHARE ANALYSIS: RHC

By Michael Gable 

The Australian market has now been up for nine out of the last sessions 10. The banks continue to rally, despite the bears coming out of the woodwork down at the low. We placed resistance for our market between 5400 and 5450 but it has now punched through that and is exceeding our expectations by threatening the 61.8% Fibonacci level. This means that the market has recovered nearly 61.8% of its recent fall from high to low. So, if we measure the drop in our market from the September high to the October low, then our market has recovered nearly 61.8% of that. The 61.8% level tends to be an area of strong resistance. Either way, such as strong bounce back is a positive sign, so when the market pulls back from here, investors should be thinking about taking advantage of any weakness.

This week, we have a look at trading opportunities in Ramsay Health Care ((RHC)).
 

Our previous look at RHC was on 9 September when it was trading at $51.93. We noted that a pullback towards $50 would be a buying opportunity. The recent market sell-off has seen it extend lower than that to dip under $48, but as we can see on the chart, the recent downtrend has now been broken and RHC is rallying impulsively with volume. RHC is therefore on the move again and likely to push to a new high. Any intraday weakness would be a buying opportunity now.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
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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