Electric Optic Systems Poised For A Breakout

This story features ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED. For more info SHARE ANALYSIS: EOS

The company is included in ASX300 and ALL-ORDS

Lower interest rates continue to support small caps, and Electric Optic Systems seems ripe for further upside despite a good rally.

By Michael Gable 

Interest rates were lowered last week in the US.

As we have highlighted before, the trend is for rates to head down and this will continue to have a positive effect on small caps stocks, as well as commodities such as gold and silver.

These all seem to be breaking higher now and this is where we continue to see the opportunities.

When it comes to commodities, we still believe that we are in the early stages of the bull run in gold, silver, and uranium.

Today, we offer a technical view on Electro Optic Systems Holdings ((EOS)).

Despite the large share price increase since May, the uptrend in Electric Optic Systems has been very sustainable with healthy consolidations along the way.

It has now broken out of another consolidation (circled) and this breakout provides investors with another buying opportunity.

Electric Optic Systems is therefore a buy here and initial stops can be considered back near $7.

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.
 

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms