Technical Support For Dalrymple Bay Shares

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This story features DALRYMPLE BAY INFRASTRUCTURE LIMITED.
For more info SHARE ANALYSIS: DBI
The company is included in ASX200, ASX300 and ALL-ORDS

Dalrymple Bay Infrastructure shares remain in an uptrend, reports Fairmont Equities' Michael Gable, with support at the 50-day moving average reinforcing the positive outlook.

By Michael Gable 

Confidence in markets still appears to be at a low point as indices here and in the US trade sideways, concerns linger over the Australian economy, and bombing continues in Iran.

The bond market until now has been fairly quiet, but yields have crept up a little in the past week.

What can shake the market and investors from this flat feeling and inject some positivity again?

We still see the main potential catalyst to be a realisation that interest rates will not be climbing higher.

We saw a glimpse of that last week as US PPI came in lower than expected and the new Fed chairman ducking and weaving around his commitment to tighter policy.

A higher oil price might also flip the narrative towards easing policy to protect the economy.

Some say that President Trump will do what he can to lower oil prices before the mid-term elections.

But with US crude inventories at 45-year lows, it is almost a physical impossibility.

As we have argued before, oil prices will head higher over time as the illusion of supply will be no match for math and physics.

The only levers to fiddle with are the made-up ones — money supply. You can’t print more oil out of thin air, but you can print more dollars.

Today, we offer a technical view on Dalrymple Bay infrastructure ((DBI))

We looked at Dalrymple in both March and June and were positive on both the fundamentals and the technicals.

The past few weeks has seen it ease back towards the 50-day Moving Average (MA) (solid blue line) and it has found support at this level.

The stock is therefore a buy here as it should resume the uptrend.

The next line of support is near the 100-day MA (dotted blue line) and investors can therefore use this as a trailing stop loss.

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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