Technicals | May 14 2019
By Michael Gable
With similarities to last year, stocks are getting cheaper on trade tensions, despite the US economy doing very well and the Federal Reserve not interested in tipping it into a recession. This means that having a bit of cash ready to go could be prudent to take advantage of the buying opportunities that it will provide.
Having said that, you don't need to throw out the good companies. In terms of stock analysis this week, charting commentary is on Atlas Arteria ((ALX)).
We had a look at the fundamentals and technicals of ALX on March 26. We liked the company and in terms of the chart, commented that there was plenty of support near $6.80 and a break of $7.15 would be a buy signal. We can see here that buying has been stepping in anywhere near $6.80 (indicated by the arrows) as the stock continues to form higher lows. The last few days has seen strong buying which is pushing it towards an all-time high. The strength of the price action tells us that there is a very good chance that ALX goes on to resume the longer-term uptrend and therefore see much higher levels during the year.
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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