Orica Resumes Up-Trend

This story features ORICA LIMITED. For more info SHARE ANALYSIS: ORI

By Michael Gable 

Share markets continue to cool off as markets reassess their interest rate outlook due to the strong US economy.

Given the run that we have seen in the US, it is no surprise that something will be offered up as an excuse to take a bit off the table.

From what we are seeing at this point in time, there doesn't seem to be a warning sign that anything beyond your run of the mill 5-10 per cent cooling off is underway in the US.

The S&P/ASX200 Index had a great start to the year, helped by the banks, but now the commodity stocks have picked up the baton which may give us a chance to better absorb any of the US induced weakness for a while before we are ready to head higher again.

We offer a technical view on Orica ((ORI)).

Several weeks ago, ORI finally broke above a major resistance level near $17.

Because this resistance level had been in place for so long, we are likely to get a multi-month move here that could see the stock push into the low $20's.

In the short-term, it is finding some light resistance near $18. This short-term dip is therefore a buying opportunity. Initial stops can be considered near the breakout zone at around $17.

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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