Bottom’s In For James Hardie

This story features JAMES HARDIE INDUSTRIES PLC. For more info SHARE ANALYSIS: JHX

By Michael Gable 

While the S&P500 Index makes new highs, the local market continues to tread water as it prepares for the next move higher.

Clearly, it is the resources sector which is dragging the chain in the short-term, while banks and technology in particular continue to trade well. This year so far has seen nice moves in gold, copper, and uranium, while iron ore, oil, and lithium struggle.

However, commodities on a whole remain at almost record low levels as a ratio to the S&P500 Index.

Some are starting to move, others are not quite ready yet, but it is early days, and our view is that short-term selling on the back of headlines is not something to be concerned about.

The big picture for the next few years still looks very constructive for much higher levels.

Today’s technical view is on James Hardie ((JHX)).

The large drop in May is looking like a sign of capitulation, which means that JHX has found a low and is now a buy.

After that large drop, we can see that the share price managed to hold onto those levels and then the range started to tighten up.

It then gapped higher and has managed to stick to these levels (circled).

We can also see bullish divergence on the RSI and a buy signal was triggered on the MACD last week. There is a high probability that a low is in place for JHX now and 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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