Opportunity In REA

This story features REA GROUP LIMITED. For more info SHARE ANALYSIS: REA

By Michael Gable 

Weak employment numbers and commentary from RBA governor Glenn Stevens last week further highlights the prospect of lower rates and the market is clearly enjoying it. Logically, we would still expect some softness over coming weeks, but the overall picture for the stock market is looking good for 2015. This week, we take a look at REA Group ((REA)) following on from its interim reports last week.
 

REA has in the past been a star performer in comparison to the broader market. For the last few years, its share price has been steadily increasing over time. On this chart however, you can see that since peaking in March last year, it took a fairly long period of time to correct against the trend. We can now see that REA was forming a flag formation, just taking a break from the longer-term uptrend. That shorter-term correction was broken at the end of January and from a charting perspective, we could see REA resume the uptrend. Shorter term, it appears as though we could see a pullback, so investors looking for an entry point on the chart can wait for a retest of the mid $40’s.

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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