Technicals | Oct 25 2016
By Michael Gable
AGM season is in full swing, and just like reporting season, it brings with it some winners and losers. Healthscope ((HSO)) was a clear loser last week and we show you on the chart why it needs to still be avoided for the time being.
Despite the recent sell-off in HSO, it is likely to fall further. In 2015, it managed to hit a high of $3.15 before falling all the way down to $2.12 earlier this year. It then staged a nice recovery, rushing all the way back to the 2015 high and surpassing it slightly after hitting $3.17. Unfortunately it was then sold off quickly at that point. Ideally we should have seen a consolidation under the previous high. After yesterday's fall, it has become obvious that by going to a new high and failing, it is likely to dip under the recent low of $2.12. We may even see the stock with a "1" in front of it. So for the moment traders would be advised to steer clear of HSO for the next few months or so until it establishes some support again.
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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
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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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