A buying opportunity with Cochlear

Stock Watch

Fairmont Equities Managing Director Michael Gable takes a technical look at Cochlear, Corporate Travel Management, Jumbo Interactive and Technology One.

Good morning. I'm Michael Gable from Fairmont Equities, and this is Stock Watch for the Finance News Network on Monday, 16th September. If you have a request, please send it through. Any advice is general only, so please consult your finance professional before acting on any advice given here today.

This is a daily chart of Cochlear (ASX:COH). I quite like the way it's trading here, and I'm happy to start picking up some shares. Basically, what we've got is an initial pullback at the beginning of August, coinciding with the rest of the market coming off. Nice move up after the result, and that was on volume. So, a decent rally here, and since then it has come back. But what I've noticed is it's just a simple three-wave correction on lower volumes. So it means we don't have to be too concerned. And then in the last three or four days, volumes picked up right at these levels, and we could see there was a nice finish there last Friday. So all of this is looking pretty good in my opinion. It looks like Cochlear will continue to head higher from here. I think current levels are another buying opportunity.

I'll move on now to some viewer requests. As I mentioned at the beginning, if you do have a request, make sure you send it through. The first one that we have is for Corporate Travel (ASX:CTD). It's not looking too good, to be honest. We've had this very clear level of support here around $20, which was broken a few weeks ago. This is a weekly chart, but you can see the manner in which it broke support. It really got belted. So, you know, a lot of negative weeks there. We could see even on this particular week, it tried to rally but it got sold down. And volume was also quite high when it broke support, and it was increasing into that as well.

At the moment, it has tried to rally in the last couple of weeks, but we really do need to keep an eye on this $20 region. At the moment, it looks like there's a chance that it'll try to retest that and turn lower, so that's the real test there. See what happens. If it fails to get through 20, we should expect to see a new low. Otherwise, it really does, if you want to be bullish on Corporate Travel's price action, it really needs to get above $20 in the next few days.

Jumbo Interactive (ASX:JIN). This is a daily chart. At the moment, it's looking a bit weak. Obviously, there's been a fantastic rally up until last week, and as we can see, a bit of price rejection here, so a potential tweezer top. And then a few negative days where there's been chances of it trying to rally, only for it to get sold off and close negative for the day. So that's looking fairly negative. You know, maybe there's a bit of support here, or even back here during that previous consolidation. But for the short term at least, I'd expect to see lower levels for Jumbo.

And the final request is on TechnologyOne (ASX:TNE). I quite like the company. At the moment, the chart's probably looking a bit more neutral in terms of really good support here near $7. We saw a nice sort of move off that towards the end of August, despite the market still looking pretty ordinary. But as we could see, it's hit this resistance line in the last few days and just come back towards that $7 region. Anything back near $7, any sort of support and rally off that is a buying opportunity. And then I think a crack of this will make the chart look a lot more bullish, but at the moment it's sort of stuck between this sort of support and resistance.

If that support level does break, there will be strong support lower down at 6.50, so not too far away, but one to keep an eye on., Just need to see it move off that $7 region again.

All right, well that's it for this week. If you've got a request, send it through and I'll try to cover it next week for you.


Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.