Accent Group: Break-Out!

This story features ACCENT GROUP LIMITED. For more info SHARE ANALYSIS: AX1

By Michael Gable 

The Australian market has been fairly flat this past week, despite the moves higher in the US. Some strength in the US dollar has seen resource stocks struggle to make any headway in the short-term, but banks, technology, and consumer discretionary have been doing well.

Reporting season has so far proved to be better than expected. Once again, with global growth holding up, and interest rates peaking, it would be foolish to expect earning seasons to "expose" a market that has "run too hard". What we are seeing so far continues to indicate a healthy share market for 2024. 

One concern that has recently been noted from some commentators regarding the US share markets is the lack of participation from the smaller stocks. However, the Russell 2000 Index, which represents the smaller stocks in the US, is now starting to get a move on. That is, participation from more stocks should start to increase now, which is again a healthy sign.

We share our technical view on Accent Group ((AX1)).

AX1 had formed a clear line of resistance near $2.15. The past several weeks has also seen it consolidate under that line (circled) as it prepared for a possible upside break.

That upside break finally occurred yesterday on good volume. This is a classic breakout buy signal and we expect AX1 to rally higher and retest the 2023 high near $2.60.

A fall back under support near $2.00 would be seen as a negative.

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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