Technicals | Jan 16 2018
By Michael Gable
The market continues to be lifted by resource and energy stocks, although some of our clients have been locking in the profits of the big miners ahead of quarterly production reports this week. The S&P/ASX 200 Index had a minor sell-off last week to coincide with a move higher in US 10-year bond yields. The weakness was especially felt in companies that are sensitive to bond rates such as infrastructure stocks and REITs.
We have a chart on Gold. We were positive on Gold for much of 2017 and had some good trades as a result of it. We have to admit to getting a little more neutral on the precious metal during the last several weeks as it seemed to be going nowhere, but it has come back to life during the last month. It is worth keeping an eye on here as the next few days will tell us whether we are going to see a decent rally unfold and whether we need to once again become more bullish and overweight on the Gold sector.
Gold has had a good few weeks here and now appears to be pushing above a several-year downtrend line. If it can hold, then we could be finally seeing the much higher levels that we wrote about last year. We are neutral for the moment, but with a slight positive bias. We would become more positive again on a clean break through US$1,350/oz. If that happens, then we would be looking for Gold to make a run towards US$1,600/oz.
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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
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
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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