Technicals | Sep 15 2020
By Michael Gable
US markets appear to have found some support for the time being, this comes after some of the heat was taken out of the NASDAQ last week. For the moment, it looks as though we are getting a repeat of the pullback in June. This is where we saw a minor pullback for a few days, followed by a bit of volatility. Once the noise is over, we can get back the main event, which is positioning for an economic recovery.
Although it is frustrating that the Australian market hasn't made any progress in the last few months (it is actually down nearly 5% just in the last two weeks), those with longer-term time frames should not be distracted by short-term noise and headlines. We still believe that the next move out of this trading range is most likely to the upside, not the downside. This means that looking for stocks to buy and remain invested in for the next rally is the key here, not jumping at shadows and selling things which are still trading within this noisy range.
In today's charting section, we identify some buying opportunities to consider with Audinate Group ((AD8)).
After falling away in June, AD8 shares then managed to level out and stay above $5.00. It looks like it is only a matter of time until it will want to rally again. Yesterday was a strong move higher, but ideally, we would like to see it push beyond $5.50 and close above that level. That would be a buy signal in our opinion and would set AD8 up for another run to retest its old peak near $7.00.
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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