Bull Flag For Charter Hall

This story features CHARTER HALL GROUP.
For more info SHARE ANALYSIS: CHC
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

After reaching a new high in August, shares have eased back to sit on top of the old high which is a positive signal, Fairmont Equities' Michael Gable reports.

By Michael Gable 

The past week has been dominated by talk of gold and rare earths and naturally at some point the vertical moves lead to profit taking.

In gold and silver, we are seeing a consolidation occur within a longer-term uptrend.

Often these consolidations can last for about three months, so unless we see some sharply lower prices in the short-term, we don’t feel there is a need to be rushing in just yet.

When the consolidation is over, we expect gold and silver to head to much higher levels.

In terms of the broader market, it still looks bullish in our opinion.

US markets have gapped up to new highs and on balance this is a bullish sign and for now we still expect further upside from here.

This means that while precious metals consolidate for the short-term, there will still be investment opportunities in the rest of the market. 

Today, we offer a technical view on Charter Hall Group ((CHC)).

Charter Hall broke to a new high in August before easing back to form a bull-flag (diagonal blue lines).

This easing back to sit on top of the old high is a positive sign.

We now have a new level of support established and this means a high chance that Charter Hall continues to trend higher from here.

The shares are also now starting to edge out of this bull-flag which means current levels are a buying opportunity.

Initial stops can be considered back near $21.50.

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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