Uptrend Resumed For ResMed

This story features RESMED INC. For more info SHARE ANALYSIS: RMD

By Michael Gable 

Share markets are likely to tread water over the next few days as we hear from the RBA and the US Federal Reserve, and markets re-calibrate their interest rate expectations.

Locally, we are still closely watching iron ore stocks. Not to join the bandwagon of those who are negative, but looking for a reversal.

Whenever iron ore falls this much and we see this much negativity around it, then that becomes a time to look for the reversal and you can end up with some very strong moves in the big miners.

In the meantime, we are getting the upside breaks in gold and copper, which we have been highlighting for a while now. And oil is also making a move up and through some major resistance levels, so we expect energy stocks to have a run here.

Today's technical view is on ResMed ((RMD)).

We looked at RMD a few times since October, with a positive view that it would continue to head higher.

In early February, it peaked just under resistance near $30 before pulling back on lower volumes. In early March, it jumped on higher volumes but it has spent the past several days making no progress (circled).

This is a good sign, as it means that the stock is absorbing any new selling up at these levels. RMD therefore appears only days away from breaking to a new high for the year and then running up towards our next target near $32. Current levels are a buying opportunity.

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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