Technicals | Dec 03 2019
By Michael Gable
For a number of weeks now we were looking for the Australian market to make new highs, not collapse as many predicted. It has finally happened and the market has looked pretty strong these last couple of weeks. Having said that, our market is likely to take a hit today, but you can’t expect every day to be a positive one. In this week’s report we have a chart of the S&P/ASX 200 Index (XJO).
Since early August, the XJO had been forming an ascending triangle, which was also sitting on top of the 2018 high. It finally broke out last week. As long as it doesn’t spend much time back in the old range under about 6,750, it should just go on and continue trending higher. A failure to kick on here though would see it go back and retest the sub-6,400 level. In terms of upside targets though, it is almost impossible to predict as it trades into all-time highs. However, by extrapolating the depth of the triangle (about 400 points), we can possibly see a move towards 7,200.
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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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