Pro Medicus: Don’t Stop Me Now

This story features PRO MEDICUS LIMITED. For more info SHARE ANALYSIS: PME

By Michael Gable 

The S&P500 Index has posted its 8th positive day in a row, which is quite remarkable considering how bearish everyone seemed to get a couple of weeks ago.

The VIX remains low and the US dollar continues to fall back. A falling US dollar is positive for risk assets, especially commodities, but most are under pressure at the moment as global growth fears still linger in the background.

Commodities are cyclical so once the mood improves, they will start to strengthen. Having said that, the one commodity that is doing well is gold.

The other observation is that although rate cut expectations have settled down from where they were two weeks ago, markets continue to price in rate cuts for later this year and next year.

This is naturally a positive, not just for markets in general, but for property stocks and technology stocks.

Today’s technical view is on Pro Medicus ((PME)).

Since our most recent comment on 30 July, we have seen PME rally further for a couple of days, but then fall back and break support near $128.50 (circled).

However, the stock quickly recovered and this breakdown now looks like a false break, which is a bullish sign.

The stock has popped out to the upside and this means that we are likely to see it continue to trend higher from here.

For another entry point, investor should look for a shallow dip into the $140’s. A sharp dip under support near $128.50 would be a negative sign.

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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