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NextDC: Buy The Dips

Technicals | Jun 30 2020

By Michael Gable 

Share markets continue to struggle in making any headway here. In terms of the S&P500 Index, 3000 points seems to be the level to watch out for. A close under that could trigger further selling. Until then, we seem to have an upper limit near 3140 that it has been unable to break through. At the moment, we do not have any clear signs that share markets will head higher and that means that we have to maintain our more cautious bias. 

In this week's report we have analysed NextDC ((NXT)).

We recently looked at NXT on 10 March when it was trading at $8.04 and noted that "the chart looks very bullish here, even more so against a backdrop of falling markets. It is likely to ease back here in the short term due to market fear, but once that is over, NXT should then be able to trade to new highs." We can see that on an intraday basis, it made a new high in early April before consolidating again. This consolidation appears to be in the form of an ascending triangle (blue lines).

The last few days has seen NXT make a new high on a closing basis. Even if it comes back into the range here in the short term, with support near $9.00, the overall trend continues to look strong with NXT forming higher highs and lows. Any dips would therefore be a buying opportunity. 

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

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

Disclaimer

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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