As we have stated, the market continues to have a strong move to the upside.
Much of this has to do with a shift in perception of the US being able to achieve a soft landing. This is on the back of more evidence that the peak in inflation in the US is behind us, China reopening, better than expected US reporting, and upgraded global growth expectations.
Although, the steepness of the run in our index suggests our index is extended and has lacked a healthy consolidation period. Further, just like a stock, one should be cautious of buying past the second or third continuation breakout during its uptrend.
That said, part of the investment thesis for taking a position in IDP Education (ASX: IEL) is China reopening, along with how well this stock has reported. In fact, the last 14 times this stock has reported, it has never had a miss, not even once, with 8 beats and 7 in-line results in the last 7 years. Given this, the re-opening of China and IEL’s excellent rate of reporting success is partly why we are looking to get established in a position now and take on reporting.
Further details on why we like IEL can be found below in our most recent report released on the 30th of January 2022.
Position Size: 200 shares
Entry: Buy up to $31.20
Stop Loss:- $29.00
Target Price:- No target price to start with. We will look to place a target price following the result half results on the 23rd of February
