Increase Stop Loss – No sleeping on the job

Brad Holland

Brad has over 20 years experience in the Australian and US equities and options markets. Brad specialises in equities and options for capital growth, income generation and capital protection. He also specialises in finding opportunities in small to medium cap stocks. Brad holds RG146 - Securities & Managed Investments and Accredited Derivatives Adviser Level 2 qualifications.

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January 10, 2024

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High Conviction Report | RMD.AX

The ResMed (RMD) shares price closed at $26.41 yesterday, up $1.41 or 5.64%. Given the increase in the share price and the volatility we have seen in this market, we will increase the stop-loss level.

As you can see from the chart below our entry price was $23.40. We will increase the stop-loss level to $24.00. With a stop loss level above our entry price should the share price fall back to the $24.00 stop loss we will exit for a small profit. A classic example of trying to let our profits run.

We will leave the stretch profit target in place at $30.00 for the time being.

One thing that may make us consider exiting all or part of the open position in the short term is the upcoming earnings date. The main listing for ResMed is in the US market. US-listed companies report quarterly earnings. The release of quarterly earnings can have either a positive or negative impact on a share price. ResMed has its next quarterly earnings date on the 24^th of January. So, watch this space.

TRADE ACTION

Current position: 300 shares

Stop Loss: Increase from $20.50 to $24.00

Target: No change $30.00

This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.