Technicals | Nov 04 2014
By Michael Gable
Aside from the Melbourne Cup, the other notable event today is the RBA interest rate decision at 2:30pm. Rates are likely to remain on hold of course. The other recent news has been the extra stimulus from the Bank of Japan. It has sent the US dollar higher and gold stocks lower. Our market is likely to stall here for a few weeks as the dividends come out of the banks and profit taking comes in up at these levels.
This week we look at a trading opportunity in Ardent Leisure ((AAD)).
Ardent Leisure has trended very well but has started to show some divergence with the momentum over the last few months. That is, as the share price was pushing to a new high, the momentum was already trending lower. Following the sell-off after their AGM last week and the failure of the share price to bounce back in the last couple of days, there is a good chance that the overall uptrend is ending here and the stock could find itself falling back towards support in the mid $2’s where it could fill a gap made here on the daily chart in early August.
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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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