article 3 months old

JB Hi-Fi Looking Vulnerable

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.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
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

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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CHARTS

JBH