Technicals | Jul 12 2016
By Michael Gable
As we approach mid July, focus will start to turn to the upcoming reporting season in August. Analysts will start trying to predict whether companies will report well or not. The seasoned investor will know that it is often more about the expectations leading into it, and an easy way to gauge that is by looking at how each stock is trading. A stock pushing through to new highs, looking overbought, and looking expensive, has further to fall than a stock that has been a bit subdued recently. We will still have some trading opportunities coming into August, but the big opportunities will come when we see companies report. The next couple of months should therefore be very interesting for us and the active investor.
AOG is still maintaining the long-term uptrend. It eased back after peaking in May, but we can see that it was merely a flag formation, a corrective pattern against that longer-term uptrend. The stock has now gapped up and broken out of that flag and it should now resume the uptrend from here and trade to a new high.
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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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