Technicals | Mar 31 2015
By Michael Gable
The last week saw a couple of fairly negative days for the Australian market. Part of yesterday’s move could potentially be attributable to the $4.73bn block trade in Caltex. That money needs to come from somewhere and it appears to have come via the selling of other stocks on the exchange. We have some commentary on the S&P/ASX 200 Index in today’s report showing where we believe our market could head to.
We are negative on the index in the short term, despite still being positive on it for the longer term. After failing to push through 6000 in early March, the market trended downwards until reaching up and trying to hit that market again. In the last week have started to see a clear failure of that level and the risk to our market has clearly been skewed to the downside. We are expecting a 3-wave decline from the intraday peak on 3 March, which will take our market to support around 5650, possibly as low as 5600. Based on what we can see at the moment, this is where the market should commence the next rally to beyond 6000.
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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
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Disclaimer
Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd 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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