Technicals | Nov 03 2020
This story features AFTERPAY LIMITED. For more info SHARE ANALYSIS: APT
By Michael Gable
In terms of immediate opportunities, it is hard to make a case for doing much until after the US election. That way we can see how stocks are trading and which ones look to offer the greatest return. In the last few months, we have seen share prices looking great for a few days and then spend the rest of the week looking pretty ugly as the day-to-day noise causes havoc with markets. We anticipate that this time next week we will have some clearer direction and some more exciting opportunities to look at.
Having said all of that, what research can we come up with on the eve of the election? In this week's charting section, we have some updated charts on stocks that we have been positive on for a while. Once the short-term volatility is out of the way, there is no reason why these stocks cannot continue to march higher. Today we revisit Afterpay ((APT)).
We looked at the APT chart in mid-August and suggested that it was ready to rally again. It then came back in early September, as tech stocks in general took a breather. After that it started making higher lows again during that month and APT then went on to break the $100 level. During the last two weeks, we have noticed that it has not been sold off heavily after reaching that milestone. At the moment it is holding above the August peak, which is a bullish sign. It therefore looks as though APT is poised to build on these levels and get trending again. If it does fall under the August peak, then the next area of support would be around $70 – $80, which, in the greater scheme of things, is not a negative as the overall trend will still remain intact.
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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