ANZ Bank Shares Look Poised

This story features ANZ GROUP HOLDINGS LIMITED. For more info SHARE ANALYSIS: ANZ

By Michael Gable 

Markets have been treading water in the past week as investors wait for the US election and absorb the negativity associated with bond yields rising again.

The fact that markets are holding in despite this negativity is a good sign for now.

In regard to the rise in the long-dated yields in the US, the bond market has been chopping and changing its mind all year, spooked by a recession that we never had; so, one must also take the recent move with a little bit of scepticism.

Whilst the employment market holds up well, we still see evidence of inflation moderating in almost every major economy. This means that we need to be open to the idea that the recent rise in yields reverses again and provides a new tailwind for equities.

Today, we offer a technical view on ANZ Bank ((ANZ)).

After selling off in late September, ANZ Bank shares then rallied back up to retest the recent high. We can now see that the stock has made multiple attempts at the resistance line just under $32.

This is a positive, as more attempts tend to weaken that level. We can also interpret price action since early September as an inverse-head-and-shoulders.

A break of this upper line would be the next buy trigger and that would start the next rally in ANZ where we would have a target near $34.50.

A drop under $30.85 would have us fall back to a more neutral stance and a break under $29.50 would be a negative.

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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