Technicals | Sep 20 2016
By Michael Gable
Our market spent half of yesterday being offline, but we are unlikely to see much action again anyway until the Fed give us their interest rate decision this week. The market has already factored in no US rate rise for September, but the odds are favouring one in December. We included a chart last week on the S&P 500 Index and showed the potential for weakness here in the short term. We have been looking to profit from that by buying BBUS which is an ETF that moves in the opposite direction to the S&P 500 Index. This weak we look at Speedcast International ((SDA)).
When we last looked at SDA, on 5 July (fundamental analysis), the stock was trading around current levels, and we commented that downwards momentum was slowing. With the stock looking as though it had completed a 3-wave decline, we suggested that it could start to head higher. With the passing of a couple of months, we can see that support is now looking good for SDA with nice moves up on strong volume and the decline from the last few weeks being very corrective in nature. SDA should continue to head higher here and we would be targeting the first level of resistance near $4.50.
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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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