Aristocrat Leisure Eyeing Up All-Time Highs

This story features ARISTOCRAT LEISURE LIMITED. For more info SHARE ANALYSIS: ALL

The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Since the April lows, Fairmont Equities' Michael Gable notes, Aristocrat's trading range has been tightening up with a break above resistance near $68.50 opening up a new leg higher.

Technical analysis.

By Michael Gable

In last week’s report, we posed the question “could we be entering a period of heightened volatility again?“

That now appears to be the case, with US markets seeing some large moves in the past three sessions.

Last week, the S&P500 and the NASDAQ finished closed under their 20-day moving averages, which we highlighted last week as the first potential warning sign of weakness ahead.

Last night’s session dragged the indices back above the 20-day MA. However, heightened volatility means that we need to be a little more cautious on US markets in the short-term.

Locally, however, we still expect funds to move further into healthcare and resources and this will help keep the S&P/ASX200 Index ticking along.

We offer a technical view on Aristocrat Leisure ((ALL))

We last looked at Aristocrat Leisure on 8 July and made the following comment about its chart:

“The trading range in Aristocrat Leisure has been tightening up since April where the lows have been trading higher and it is forming some clear resistance near $68.50.

For a buy signal, we would like to see a break above that resistance line near $68.50. If that were to occur, then we would expect a new rally higher.”

Aristocrat Leisure has now made the breakout and current levels are a buying opportunity.

An initial stop can be considered back near $63.00.

We expect a retest of the all-time high where we can then re-assess.

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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