Since posting an intra-day high of $6.92 on August 31st, shares of QAN have slid over 20% lower and reached a 7-month low of $5.38 in early trade today.
Much of this correction has been driven by higher oil prices, which we believe are transitory and largely covered by QAN’s in-house dynamic hedging operations.
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Technically, the share price reflects a deeply oversold reading on the relative strength indicator (RSI) and looks to be exceptional value at current levels.
QAN is part of our ASX Top-50 portfolio and we see initial resistance near $6.65, with an longer-term target of $7.25.
QANTAS
