Entry Point For ResMed

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    [0] => Array
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            [0] => ((RMD))
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    [1] => Array
        (
            [0] => RMD
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)

This story features RESMED INC.
For more info SHARE ANALYSIS: RMD
The company is included in ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Michael Gable 

With the Australian dollar strengthening over the last couple of weeks, we are likely to see the RBA make that anticipated second rate cut of 2015. We believe they will cut today, but if they don’t, then beyond some short-term volatility, it won’t be a drama for our markets. We know a rate cut is on the way. Despite some slightly underwhelming results from Westpac and slightly better-than-expected results from ANZ this morning, the banks have come back to such an attractive yield again that they will be bought up and will therefore push the market higher. 

The past month has seen a big move in ResMed ((RMD)) so we take a look at this company today.
 

Whilst it looks like wanting to bounce in the short term, the weekly chart suggests further downside over the next few weeks or so (the chart below is a daily chart). There is a substantial gap around the $7.50 level which could draw RMD down towards. It also represents about a 50% retracement of the October – April rally which could also provide some strong support for RMD. So at this point, we would be looking for an entry point near $7.50. From there it should resume the longer term uptrend.
 

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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