Qantas To Lose More Altitude

This story features QANTAS AIRWAYS LIMITED. For more info SHARE ANALYSIS: QAN

By Michael Gable 

The Dow Jones index topped the 18,000 mark overnight for the first time since July, which is a clear sign giving the local market some direction; something that has been lacking recently in light of the Australian Dollar and oil price both having rollercoaster rides, US earnings still progressing (more than 90 companies are scheduled to report results this week) and local banking stocks still under political pressure (notwithstanding the rally in the major banks over the last week).

News that we are heading into an election on 2 July, as well as the upcoming federal budget on 3 May, have greater implications for businesses and the consumer, than for the stock market. Consumers do not like uncertainty; and a relatively long election campaign is generally not good for business spending as companies tend to defer making big decisions.

In today’s report we look at Qantas Airways ((QAN)).

A few months ago, we warned about the rising wedge forming on QAN. It dragged out longer than expected but yesterday sees confirmation of the downside break out of the wedge. This implies that QAN will head down to the base of the wedge which is near $3.

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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