Technicals | Aug 25 2020
As we foreshadowed a few weeks ago, the S&P 500 Index has now rallied strongly to trade to new highs. It is disappointing that our market is still on the cusp of heading higher, but it is hard to rally when no-one is buying the Big Four banks. However, as we have mentioned a few times already, the positive reaction from reporting season coupled with decreasing infection rates in Victoria will help our market get trending again. It is taking longer than expected, but like a compressed spring, the longer it goes on for, the better the move when it does break.
In today's report we have a look at Whispir ((WSP)), developer of cloud-based communications management systems internationally.
Although it has covered a lot of ground since the March low, WSP has actually been trending very well. After peaking in May, it then consolidated the move during June. After breaking higher in July, it went on another run, making a new intraday high a few weeks later. The last few weeks has seen it consolidate that move once again. Then, last Friday it finally broke higher on good volume and is now set to rally again. The intraday high from July may cause a slight pause in the rally, but based on the way WSP is currently trading, it should continue to push quite a bit higher from here.
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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
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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