Opportunity In Ramsay

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

By Michael Gable 

The Australian market has seen a healthy few days of trading, no doubt helped by the recent bounce back in the price of iron ore. Some investors will be quietly amused that the recent low came in about the same time that Joe Hockey suggested a collapse in the price to US$37 per tonne was a possibility. The commodity is up nearly 25 per cent since the beginning of this month. The market doesn’t want to go higher, and it doesn’t want to go lower, but the longer this goes on for, the more chance that we may not get a pullback – not just yet.

There is not much this week in the way of economic news, but in the US we have the FOMC meeting on Wednesday. Chinese manufacturing and non-manufacturing PMI’s are also out on Friday. We have a detailed look this week at Ramsay Health Care ((RHC)).

 

RHC has trended higher for a number of years now and the pullbacks tend to be fairly shallow. We are seeing another one of these shallow pullbacks right now. You will notice that the pullback is in the form of a flag which means that the share price is taking a break from the overall uptrend and would likely resume it soon. We could buy at current levels, which are at the bottom of this pattern, or more conservative investors could wait for a break to the upside of this flag formation. A break to the upside would mean that RHC would resume the uptrend and start pushing to new highs.
 

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.

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms