Technicals | Apr 21 2020
By Michael Gable
Many companies have continued to see increases in their share prices over the last week. Infection rates are dropping and the narrative continues to turn more towards opening the economy back up. This is good for share markets and it continues to demonstrate that there is light at the end of the tunnel. There will be hiccups along the way and talk this morning, however, is of negative oil prices. Remember, you make money by investing in what will happen in the future, not what is happening right now. Just as you don't buy shares in Woolworths because everyone is stocking up today, you don't dump oil stocks because prices have briefly turned negative.
In 12 months from now, oil demand will be a lot higher than what it is today. The transportation of goods will still require oil, and the last time I checked, no-one has replaced my V8 outside with an electric runabout. And with oil prices this low, there is even less incentive to pay up for alternative energy sources.
In this week's report, we have looked at Sydney Airport ((SYD)).
From early April, SYD started to find support and made some good progress to get back above $6. Volume has also been fairly healthy on the way back up here. We now have a higher high and a higher low and there is a good chance that the March low should hold for the stock.
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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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