ANZ oversold, at Fibonacci support

by Michael Gable

The banks have been sold down heavily recently as the drop in the Australian dollar has seen foreign money flow out. However, interest rates are still not going up soon and the yield is still viewed attractively by domestic investors. Now yielding about 5.5% plus franking, we should see support re-enter. ANZ also goes ex dividend in 2 months time so we also need to bear that in mind.

The chart shows that it has fallen to the 61.8% retracement of the Feb-Apr rally. It has also moved into oversold on the RSI (circled). It is yet to move above the 30 line to confirm a buy signal, but investors can do well in keeping a close eye here on what ANZ does next. There may be a buying opportunity around the corner.


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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