Macquarie Shares Poised For New Highs

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This story features MACQUARIE GROUP LIMITED.
For more info SHARE ANALYSIS: MQG
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Macquarie Group shares are consolidating just below record highs after a strong rally above $230. Fairmont Equities' Michael Gable is preparing for a breakout above $240.

By Michael Gable 

Today is the day the RBA (probably) raises interest rates for the 3rd month in a row.

Although monthly inflation numbers last week came in slightly lower than expected, a headline figure of 4.6% is not where we need to be.

As we all know, despite the convenient narrative to blame it on higher oil prices, this was a problem that has been brewing for a while.

Our view remains that oil prices will be higher for longer and this will have knock-on effects to other assets over time as prices of commodities, hard or soft, climb higher over the next few years.

Although what is about to happen can have similarities to events in the distant past, we believe this sort of supply hit is unprecedented, which makes it almost impossible to model.

Do we end up with massive inflation and higher rates? Or do we also see a big destruction in demand that later on causes rates to come back down just as quickly?

To be fair, no-one knows these answers.

For the immediate future, however, it is clear we will have higher prices, higher interest rates, and more uncertainty.

That can’t be good, in our opinion, for sectors like discretionary retail, high P/E tech, or for the big 4 banks.

This means investors still need to tread carefully over the next few months, because we are also of the view most market participants continue to underestimate the supply problems faced by oil and other commodities. 

Today, we offer a technical view on Macquarie Group ((MQG)).

After falling in late February, the trading range in Macquarie shares then tightened up during March.

It then broke out of this range and rallied strongly, pushing beyond the $230 resistance level, and then testing the old high near $240.

The shares are now consolidating under the 2025 high and it appears as though it is just a matter of time until they break higher.

Macquarie is a buy here, although more conservative investors may wait for a weekly close above $240.

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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