Hi testrichard,I think you will find that RMD is very much a...

Hi testrichard,

I think you will find that RMD is very much a defensive stock. Being in the health sector you will find that these stocks have generally outperformed the market over the last 1 year or so. In particular RMD has been very strong when the general market has been very weak.

It seems the tide is turning somewhat and investor appetite it getting much stronger for cyclical stocks as opposed to safety/defensive stocks like RMD. Also as mentioned already here, the AUD is getting stronger and the USD is getting weaker and RMD earnings are in USD. RMD on the ASX follows the NYSE RMD by the way.

If this is just another "bear rally" as some are predicting then you will see RMD fire up again if the XAO starts to come off rapidly. I personally cannot see that happening and I believe this is the start to the bull run. I expect the market to have another look down but I believe the bottom is in imo.

Below is a chart to RMD which I now believe is the main reason for its decline. Of course it began with fundamental reasons but now is being driven down because of the chart. Just imo

It is sitting well below the exponential moving average (EMA)
It has broken an 8 month up trend & could fall to around $3.40 imo if the market keeps it's general upward momentum. Just my opinion, hope it helps.