A Multi-Month Up-Trend For Beach Energy

This story features BEACH ENERGY LIMITED. For more info SHARE ANALYSIS: BPT

By Michael Gable 

At the moment, there is not much wrong with how markets are trading.

On the macro side, we had US Personal Consumption Expenditure numbers released on Friday which were in line with expectations.

We have seen Chinese PMI's rebound, and the US ISM Manufacturing PMI came in above 50 for the first time in 16 months.

We have been pushing for commodities to do well and the past week has seen some nice moves start again in gold and oil.

Uranium term prices also continue to move higher which means we should continue to see upside in those stocks.

Iron ore prices remain volatile but we still maintain that these are the levels to be getting back into iron ore stocks.

The rebound in global growth will quite simply lead to higher iron ore prices. 

This week we offer a technical view on Beach Energy ((BPT)).

We noted in mid-January that BPT was starting a new uptrend and we were targeting levels near $1.90.

BPT pushed up towards $1.90 last week before easing back. However, price action looks very bullish here and we are likely to be seeing the start of a new breakout.

Current levels remain a buying opportunity. We expect a multi-month move up towards the old high near $2.80.

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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