Car Group Shares In Renewed Uptrend

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

Michael Gable of Fairmont Equities believes the trend is back up for shares in Car Group.

By Michael Gable

Two weeks ago, we anticipated a breakout in resources, especially precious metals, and that seems to be confirming now.

As mentioned last week, we are at the start of the next phase of the commodities rally.

Not only do we expect materials to do very well from here, but energy as well.

Oil prices should continue to strengthen, but not only that, we have noticed that energy stocks have become more immune to the headlines coming out of Iran.

In our opinion, they just want to go higher now.

Today, we offer a technical view on Car Group ((CAR)) shares.

CAR peaked in August last year and then fell from about $42 until levels near $22 in March. It then bounced back up towards $28 but traded sideways for a few months after that, forming a clear resistance line near $28.

Last week, it broke above this resistance line and then spent the next few days tracking sideways and showing some good buying support on any dips.

We can therefore be confident that CAR is ready to head higher from here.

Current levels are a buying opportunity and initial stops can be considered just under $28.

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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