No Rush To Buy Vocus

By Michael Gable 

The US markets were closed last night and we have the RBA interest rate decision today, but our view is that the Australian index should continue to show a little more weakness from these levels with September likely to be a negative month for the market. Today we look at Vocus Communications ((VOC)) which is one of the "popular stocks" out there in the market.
 

VOC has clearly eased back since the May high, but what is interesting is the amount of volume that has gone through in the last few weeks. This volume has pushed the stock down almost another $1 since they reported. This weakness means that we could see VOC retest the longer term uptrend line in the low $7's. Also, if VOC is pulling back in 3 waves, and wave 3 is 1.6 times the size of wave 1 (which is often the case), then that also means a target of the low $7's. Buyers can therefore wait for a little more weakness before expecting support to come back in.

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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