Technicals | Sep 01 2020
By Michael Gable
The S&P 500 Index continues to trade at all-time highs and the Australian market only provides us with further false starts. Once we see the S&P/ASX 200 Index close at 6200 or higher, then we know we can commence the next leg of the rally. Until then, it is destined to track sideways. Although the US market may consolidate at some point soon, that won't necessarily lead to a big decline in our market.
If you think back to May 2019, the S&P 500 Index hit a new high and then declined about 6.5% during that month. Our market actually gained a little over 1% in that time. This means that there is scope for our market to hold in here, regardless of whether US markets consolidate or not.
In this week's report, we have a chart on Temple & Webster Group ((TPW)).
After rallying strong from late March to late July, TPW shares then traded sideways to consolidate the move. The last few days has seen it attempt to break higher again, with yesterday's gap up on good volume confirming that the uptrend for TPW is back on. This breakout is therefore a buying opportunity and investors can run a trailing stop.
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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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