Technicals | Oct 29 2019
By Michael Gable
As we forewarned last week, we thought that the S&P500 chart was actually looking pretty good and it was looking as though it wanted to break higher, despite the bearishness out there, and that October may well be to be a good month for markets. Last night the S&P 500 Index rose to a record high, although the Australian market is still about 100 points away from the July peak.
In early September, before the Saudi air strikes, we made the observation that early positioning seemed to be occurring in the energy space. You may also have noticed that we have recently been including more charts on resource stocks. It is not a coincidence. In some ways the market and the flow of money is trying to tell us something about the outlook for the global economy. Today's report looks at nickel miner Independence Group ((IGO)).
The consolidation in the IGO share price from the last month appears to be ending, with IGO tentatively breaking higher yesterday. It is also starting to trigger a buy signal on the daily MACD (circled). Ideally, we would like to see a close above $6.40 to confirm the move higher.
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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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