ALS Shares Resuming Uptrend

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This story features ALS LIMITED.
For more info SHARE ANALYSIS: ALQ
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

ALS Ltd shares have recently taken a breather from their uptrend. Fairmont Equities' Michael Gable believes the dip over the last few days offers a buying opportunity.

By Michael Gable

Volatility has definitely spiked higher in the past couple of weeks, whether you are measuring it via the VIX or just observing the day to day price action.

As “fun” as it can be when you are on the right side of the trade, it usually pays to be a bit cautious and see what direction will emerge in any particular asset class.

This is because we believe the best risk/reward returns occur when volatility is low and steady uptrends can be sustained.

A couple of weeks ago, we saw the “flash crash” in precious metals, and in the past week we had some big sell-offs in US tech and Bitcoin.

Although everything was initially taken down at the end of last week, we are already seeing a bounce to bring us back to where we were a week ago.

These bouts of volatility could be starts of new trends, or perhaps certain assets just need to settle down to get moving in the same direction again.

In the case of precious metals, they seem to be settling down and getting ready to eventually head higher again.

In the case of US tech stocks, it still remains to be seen whether there is going to be a sustained move higher or lower.

Either way, the sideways range for the overall index is probably going to come to an end very soon.

Today we offer a technical view on ALS Ltd ((ALQ))

During October-December, ALS was forming an inverse-head-and-shoulders as a continuation pattern.

That’s it, it was taking a breather from the uptrend.

The upside break in early January was the buying opportunity. However, the past few days has seen it come back to retest the breakout.

This dip from the last few days is therefore a buying opportunity for those willing to run a stop just under support near $22.50.

ALS is expected to continue trending higher from here.

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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