Technicals | Dec 17 2019
By Michael Gable
Yesterday was a fantastic day for the Australian share market and we look set to make new highs again, only a few weeks since the last record-breaking level. We have been bullish on the US and Australian share markets for several weeks now and we expect the rally to continue into 2020. Certain sectors and stocks will take the lion's share of gains next year.
One example is materials and energy. A few months ago, we explained that movements in those sectors were giving us clues that they were likely to head much higher. Continuing on from that theme, we have a chart in today's report on BHP Group ((BHP)).
Our most recent BHP chart was on 25 November when we commented that it continued to look bullish and that it should retest $40. This monthly chart shows the longer-term prospects for BHP. In the last several years, there was major resistance near $35.00. As we forewarned over 12 months ago, BHP was poised to burst through that and rally to over $40.00. It is now clear, looking at the monthly chart, that the pullback during the last few months has found very good support near the old resistance level of $35.00. With that level of support now providing a springboard for BHP, we expect it to push past the 2019 high and rally towards $45.00 during the first half of 2020.
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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