Technicals | Mar 12 2019
By Michael Gable
Share markets have had a soft week, which isn't unexpected given the big run that we've had since the start of the year. However, we seem to be moving around on rumours around trade deals again, and any recent selling hasn't been too dramatic. Combine this with the fact that many fund managers are massively overweight cash and missing the rally, then it gives us a bit of comfort that for now, dips will be bought and the momentum remains the upside.
This week's report looks at Treasury Wine Estates ((TWE)).
TWE spent the end of 2018 establishing some good support near $14.00. It then broke through the $15.00 resistance level earlier this year. However, in mid February, it came crashing back down to the $15.00 level, which is now offering support. It hasn't bounced strongly yet which is a slight concern. If we can see further evidence that TWE wants to hold above $15.00, then we can be confident that it won't head any lower and that would be a buying opportunity. Otherwise if it breaches the $15.00 level, then investors can wait for prices closer to $14.00.
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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
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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