Upside For Ramsay Health Care

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

By Michael Gable 

The prospect of a rate rise in the US finally happening in December has sent the Australian dollar lower over the last few days. This means that those foreign investors lured by the cheaper Aussie can put off their purchases for a little longer. If, say, the $US value of the Aussie market will be getting a little cheaper, then it makes sense for some foreign investors to jump out now and get back in later when their currency is more powerful. Hence the sell-off yesterday on the Australian market, which was pretty broad based.

We still believe a low for the year has been found but a retest here could be the foundation for the much anticipated "Christmas rally". Healthcare stocks are bucking the recent move down in the market, so we show you a trading opportunity today in Ramsay Health Care ((RHC)).
 

RHC has had a fairly flat correction since peaking earlier this year, which is a good sign. We can see it come back towards the longer-term uptrend line and price action the last few weeks has been particularly bullish. A trend change has also occurred on the weekly MACD (circled). There will be some resistance just above $65, but a break of that will see it head into the $70's.
 

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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

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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