Technicals | Jan 24 2017
By Michael Gable
Donald Trump is now President of the US and the sun still rose the next day. Reporting season kicks off in a few weeks time and as the market eases back into that time frame, it will once again throw up a few opportunities. It also becomes a minefield of earnings misses and yesterday saw downgrades from real estate company McGrath (no surprises there) and Brambles (surprised everyone, and "embarrassed" the outgoing CEO). Gold continues to march on and smaller cyclical stocks continue to rally such as LNG Ltd and BlueScope which traders took profits on yesterday.
Over the last few weeks, we have been flagging short-term weakness in the S&P/ASX 200 Index and for that to be mainly driven by the banks – which is precisely what is happening. The big 4 get a lot of coverage but in today's report we look at the charts of Bendigo and Adelaide Bank (BEN).
After an impressive run last year, BEN seems to have hit a brick wall. Like the other banks, it is expected to come back here. It has provided us with some reversals signals (circled), the shooting star on the price chart and a sell on the RSI. BEN is expected to now pull back towards support near $12, but ultimately we believe it can go as low as about $11.30.
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
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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