Technicals | Mar 26 2019
By Michael Gable
With talk of yield curve inversions filling the airways, the S&P/ASX 200 Index dipped slightly under the 50-day Weighted Moving Average. This has usually been a reliable predictor of market weakness. That does not necessarily equate to a huge drop in the market, we may well see a flat consolidation here, but it’s a sign to get a little more defensive. Some of our favourite defensive stocks have held up well, and gold is also doing well, so we have an updated chart of Newcrest Mining ((NCM)) which is now on the move once again.
We became positive on NCM at the beginning of the year when it burst out of a 2.5 year triangular consolidation. On a smaller scale, it has spent the last month consolidating again in the form of an ascending triangle with an upper resistance level at $25.60. NCM has now broken out of that shorter-term consolidation. NCM is now a buying opportunity again as we expect it to resume the uptrend. The 2016 high was at $27.20 but it should make light work of that as it heads up towards major resistance near $30.00.
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
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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