QBE at the right levels

by Michael Gable

As we can see on the chart below, QBE staged an impressive rally during March. However, since then it has drifted back to its breakout zone of $12. The move back has been corrective and has used up more time than the March rally. I have also noticed that the stock has gapped 3 times during this pullback. That is, we have a potential breakaway gap (1), a continuation gap (2), and finally an exhaustion gap (3) which caused an island reversal (circled). We can also see divergence on the RSI. I would feel comfortable buying QBE down at the these levels. For some clients I have sold the $12.50 put as an alternative strategy to buying shares.


Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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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