Zip Co Shares To Continue Uptrend

This story features ZIP CO LIMITED. For more info SHARE ANALYSIS: ZIP

By Michael Gable 

In terms of market commentary, the major indices remain in uptrends.

The S&P500 Index is within striking distance of its all-time high and our local market is pushing through to new highs.

It is another demonstration that we need to turn off the noise from so-called experts and respect the trend.

Our most recent buy recommendation on CBA was back on 1 October when it was trading near $135 and now it is above $160.

Did we expect that price level in such a short period of time? To be honest, no.

But this is why respecting the trend is more powerful than listening to every analyst that has spent all year rating CBA as a “sell” since it was closer to $100 per share. Hopefully we are not jinxing it here by talking about it.

Today we offer a technical view on Zip Co ((ZIP)).

ZIP has been trending well all year. Our previous comment was on 8 October when we identified that the recent pullback was over and it was ready to head higher again.

Once again, we have seen ZIP consolidate back in a bull flag and yesterday’s breakout (circled) is now another buying opportunity, as ZIP should continue trending higher from here.

Initial stops can be considered under last week’s low at $3.06.

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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