A Technical Breakout For ResMed

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This story features RESMED INC.
For more info SHARE ANALYSIS: RMD
The company is included in ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

ResMed appears to have formed a technical bottom after breaking above key resistance, Fairmont Equities' Michael Gable reports.

By Michael Gable 

The month of June is behind us and it is now becoming clear that much of the selling in its final week had to do with investors squaring off positions to either lock in losses or try to ensure they can lock in a particular CGT outcome before it becomes a lot more difficult in the future.

The first several days of July has seen the Australian market stabilise and we have seen some good buying in stocks which copped a bit of a battering the prior week.

In our opinion, it is clear that US markets are undergoing a rotation again.

It’s not pretty to observe day to day, but it’s enough to keep the major indices trading sideways, which isn’t very different to the back half of 2025.

We highlighted last week that, in our opinion, a major catalyst for the market would be changing expectations on the direction of US interest rates.

In June we saw a bit of panic as the market interpreted comments from the new US Federal Reserve Chairman as a sign that interest rates will be heading higher.

We still hold the view that President Trump is happy to let inflation run higher and he will want rates to be lower; so as markets start to realise this, we will see some positive movements in stocks, especially in commodities and precious metals (hard assets).

That realisation appears to be slowly taking place and comments overnight from US Fed official Christopher Waller that inflation should be a target “range” is a further indication they are not as determined get inflation down as the market feared in June. 

Throw in some rubbery inflation figures and an artificially-depressed oil price and you start to build a narrative again for rate cuts.

Today, we offer a technical view on ResMed ((RMD))

ResMed ((RMD)) peaked in August and then started to trend lower.

In the past several weeks, it has formed an area of resistance near $30.

With the stock now breaking above this resistance line, we can see that it has put in a head-and-shoulders low.

Volume has also been high in the past few weeks, and the stock is now trading above the 50-day Moving Average (MA) (dotted blue line).

The 50-day MA is also starting to level out again.

There is a good chance that ResMed has bottomed here, and it should recover some of the recent decline.

The first area of resistance is near $33, and after that we would be looking at $36.

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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