Technicals | Jul 28 2020
By Michael Gable
A sideways market can be frustrating, but you will notice that it has continued to edge slightly higher since mid-June. Whilst getting back above 6000 on the S&P/ASX 200 Index was the focus a several weeks ago, the Australian market has quietly done its thing above 6000 points, and we haven't closed with a "5" in front of it for two weeks now. The trigger for the trend to commence in earnest is a break above the June peak.
That would probably coincide with the S&P 500 Index making new all-time highs, which at the same time would trigger discussions around why the market doesn't make sense. Then again, when has it ever made sense to the man on the street anyway? For the moment though, apart from funds flowing back into the tech space, the other obvious money flow is away from US dollars and into assets which benefit from a lower dollar. At the moment that is resources, including gold.
In this week's report, we take a look at Macquarie Group ((MQG)).
We have been bullish on the Macquarie chart since the end of March. After initially peaking in June, it then consolidated the prior rally by trading sideways in the form of an ascending triangle. The last few days has seen it break beyond this triangle, successfully retesting that breakout zone around in the low $124's. MQG should now continue to rally from here. The next area of consolidation should then take place around $140 – $150.
[Note: Macquarie holds its AGM on Thursday – Ed]
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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