Technicals | Aug 15 2023
This story features RESMED INC. For more info SHARE ANALYSIS: RMD
By Michael Gable
The cooling off in US markets continues to look fairly orderly at the moment.
Most people are expecting some more heat to come out of markets and we also have US 10-year yields edging higher again which could put pressure on risk assets.
However, the market often does what you least expect, so we could see the dip buying which we have previously spoken about to kick in now and the market could edge higher again. A likely cooling off in US yields from here will be the "justification" for markets to recover.
Locally, our index has gone nowhere all year and we can look to a worse-than-expected Chinese economy to blame for our market treading water. But treading water is better than a downtrend.
A lot of negativity is coming out of China and the market is generally holding up well, so it will only take some eventual good news to get it going again.
In terms of individual sectors, we have been talking up the energy sector for a while and in the past several weeks we looked at oil stocks such as STO, WDS, and BPT, along with other uranium exposures such as BOE, BMN, and DYL.
The spike higher on Thursday in the oil stocks came on the back of a prior rally, and it was news-related (LNG prices in Europe), so it smacked of FOMO buying near the top. We are still bullish longer-term but suspect that the oil stocks have hit a short-term high.
The uranium names should have further to run and coal stocks are also looking like they have found a low and have further upside.
Today however we look at ResMed ((RMD)).
The recent decline has seen RMD break the uptrend line and now it is testing a strong support level near $28. It is too early to know if it will stop here or continue falling.
If this is going to be a low, then RMD is likely to build a base here for a few weeks or so, similar to April-May 2022.
If it can do that, then we have a buying opportunity. Otherwise, the next support level down is near $26.
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.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
For more info SHARE ANALYSIS: RMD - RESMED INC