ANZ Bank Shares Eyeing $40 Yet Again

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

ANZ Bank shares have completed a bullish bottoming pattern, Fairmont Equities' Michael Gable reports, with technical indicators suggesting a rally next looks likely.

By Michael Gable 

The US Federal Reserve decides on interest rates this week. Markets are currently pricing in a 38% chance of a rate hike.

With fighting escalating last week in Iran, it was interesting to see the US military wind back their operations over the weekend which leads to a convenient decline in oil prices for a couple of days.

We are still of the view that the realisation that rates will not go higher will be the catalyst for the market to head up again.

It will lower the US dollar, and gold will rally once more.

We could be wrong and we will know in a few days’ time if that is the case.

As we mentioned last week, President Trump can’t print more barrels of oil. Oil is going to go up over time anyway and we can’t see any reason why that isn’t the case.

But they can print more money, and they can try to manipulate rates lower and grow their way out of debt.

We looked at the S&P500 Index in last week’s report and noted the tightening formation. It appears we will know this week which way it wants to break.

With the major miners now looking well supported and the banks trading quite well, on balance it appears as though our market is getting ready to head higher again.

Of course, if we cop a hawkish hold from the US Fed, or at worse, a rate rise, then we will have to reassess. 

Today, we offer a technical view on ANZ Bank ((ANZ)).

After peaking in February, ANZ then pulled back for a few months, finding a low in June near $34.

It rallied off that level, retested it, and then broke above a resistance line near $35.70.

It came back to retest that and is now on the move.

We can therefore see that ANZ has put in a bottoming pattern and has broken the downtrend that was in place over February-June.

ANZ is therefore likely to rally from here. ANZ is a buy at these levels, and we expect it to rally up towards $40.

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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