Carsales Restrained For Now

This story features CAR GROUP LIMITED. For more info SHARE ANALYSIS: CAR

By Michael Gable 

Today we look at Carsales.com ((CAR)).

The chart for CAR is a bit messy. Although we can say that it has been trending up for a number of years but has spent much of 2018 trading in a range. That range appears to have an upper limit near $15.50, with the stock making some higher lows since April. The fact it is making higher lows is a positive. However, volume has been increasing on the way down during the last few weeks, and that is not a good sign. Support is back near $14. We can't be confident of the stock making much progress until it can make a weekly close above resistance near $15.50.

[Note: Last week Carsales received two upgrades to Buy or equivalent from FNArena database brokers — one a double-upgrade from Sell. Both brokers cited earnings upside not reflected in current pricing. The database now shows four Buys and three holds, with no Sells.]

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)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

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

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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