Technicals | Feb 11 2020
By Michael Gable
Despite the coronavirus, the US share market has made another all-time high, and the Australian market has been consolidating the gains from early January in an orderly fashion. Materials and Energy stocks remain a bit risky in the short-term, although the big miners yesterday saw some decent buying at the end of the day. Healthcare stocks look very strong and our top two holdings in CSL and ResMed continue to trade very well, and the smaller stocks like Avita Medical, Nanosonics, and Pro Medicus are also catching a bid. The other sector that has been making some nice gains recently is IT, where we have noticed some strong buying come back in during the last few days.
This week we look at Wisetech Global ((WTC)).
WTC had underperformed the market during the last few months, but it looks like it will rally again now. After falling away sharply in October, the shares started to settle down and the range began to tighten up. It then broke higher last week (circled), triggering a buy signal and showing its intent to rally again. In the short term we may see some resistance near $29.30 and then higher up near $33.00.
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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