Technicals | May 17 2022
This story features BRAMBLES LIMITED. For more info SHARE ANALYSIS: BXB
By Michael Gable
As we mentioned last week, a breaking of support on the S&P 500 Index means that we need to be prepared for lower levels on the index. That view hasn't changed. As we noted last week, you have to consider whether it is worth taking up a new trade right when the overall index looks bearish at this point in time. But these things are always very dynamic which means that we may well have a more bullish looking market and therefore some higher probability set-ups pretty soon. Our analysis this week is on Brambles ((BXB)).
The share price is at the same level from early 2000, so any trends in BXB are short term. However, even before yesterday's news regarding CVC [takeover proposal from the private equity firm], it appeared as though BXB had put in a bottom earlier this year and the share price had been building up nicely. We now have a situation where resistance is nearby at $12.50 and support is back near $10.50, so the share price is in the middle of those levels. Charting wise, it looks like a hold here.
[FNArena database brokers responding this morning to the takeover offer agree the implicit price undervalues the company, suggestsing a higher offer may yet be needed.]
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
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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For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED