Technicals | Jun 23 2020
By Michael Gable
In the last few days, we have seen the share market settle down a little in comparison to the volatility being experienced over a week ago. As mentioned last week, price action in our market has indicated that the upside run is over for the time being and it is best to wait and see what it wants to do from here. Our indication last week was that at best we trade sideways for a while, otherwise the risk is to the downside. For the moment we appear to be taking the "at best" approach with the market tracking sideways during the last few days. For now, that means a trading range under 6000 on the S&P/ASX 200.
In the meantime, today we look at Newcrest Mining ((NCM)).
During the last month, NCM had underperformed the market, peaking in mid May and not making any progress since then. Now, however, it looks like it is ready to rally once more by breaking what appears to be resistance (circled). There will be further resistance nearby at $32, so ideally, we would like to see it close above that level to feel more confident that there will be further upside. A push back under $30 would be viewed as a negative.
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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