Technicals | Dec 18 2018
By Michael Gable
Markets worldwide are still jittery despite the Australian market showing signs in the last week of wanting to get on with it. US markets are selling off into Wednesday's Federal Reserve meeting and the S&P 500 Index is now having its moment of "peak fear" as there doesn't seem to be a positive story out there and traders capitulate. Once again, we believe that this leaves markets vulnerable to a move higher as consensus swings too far in the one direction.
For the S&P 500 Index, it is just a matter of waiting for confirmation on the charts that a low is in place, but we feel that we are close to that low, not a further slide of another 10%.
Today's report looks at JB Hi-Fi ((JBH)).
Price action for JBH is neutral for now but it is bordering on the negative. The $22 level was a major resistance for JBH until it broke free of that in 2016. It came back to test it again in 2017 before jumping higher earlier this year. However, the shares failed to kick on and we are getting multiple tests of this $22 level again. JBH getting sold into the rallies and finding its way back to $22 is a negative sign. For now, we remain neutral on the stock until we can get confirmation. But a clear break of $22 with a failure to recover would make the JBH chart look negative and could result in prices back in the $14's.
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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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