Technicals | Jun 25 2019
By Michael Gable
This week we look at Sydney Airport ((SYD)).
We highlighted a possible opportunity with SYD on 30 April when it was trading at $7.61. Our commentary at the time stated: "SYD has been range bound for nearly 3 years now. The upper limit of that range is near $7.60. The stock has had a few attempts at pushing through that level but it has failed each time. SYD is therefore one to watch. A break of that level would draw in more buying. When we remember the rule that the longer a stock consolidates for, the bigger the breakout, then this means that if SYD can push to a new high shortly, then that would be the start of a fairly large multi-month move.
For the moment though we remain neutral just in case this resistance level sees more selling kick in." SYD has now clearly broken free from this consolidation. We should therefore now expect a substantial multi-month move to take place with SYD. Positive price action suggests that current levels are a buying opportunity.
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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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