Technicals | Jul 21 2020
By Michael Gable
As we mentioned two weeks ago, the S&P/ASX 200 Index pushing beyond 6000 was a positive sign, but there was a lack of follow-through. Whilst it has continued to track sideways, the S&P 500 Index in the US has now surpassed the June high, which was its next major hurdle. This should provide impetus for the Australian market to get moving again. Whilst a lack of direction has been frustrating, the fact that it has held up despite the increasing virus numbers locally cannot be ignored.
The Australian market still needs to push beyond its June peak, but we may now see that at least get attempted this week. If it can push past that resistance level, then we would be targeting 6500 on the S&P/ASX 200 Index. Before we get too carried away, we need to see some good price action today/tomorrow before we can start leaning more in that direction.
In today's report, we have analysis on Northern Star Resources ((NST)).
NST is forming a classic "cup and handle" formation, and all it needs to do is close at a new high to trigger a buy signal. After falling away in February, it rallied back up to retest this level in early June. After falling away again a few weeks, it has since climbed back up to once again retest it's old high. This is a bullish sign. However, we can only become positive on NST once it breaks the horizontal line and preferably closes above $15.50.
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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
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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