Technicals | Nov 10 2020
By Michael Gable
Share markets have had a few good days, where generally most stocks have been heading higher. However, overnight price action in the US suggests that it will start to be a bumpy ride again as stock performances start to diverge. There will be winners and losers from here and the next few days will give us a clearer indication as to which stock prices will continue on and which ones will falter. Overlaying this of course is the potential that any adverse movements at the individual stock level in the next few days are merely an aberration against a longer-term trend.
In terms of the Australian market, despite some bumps along the way, we should generally see the S&P/ASX 200 Index head higher from here. In today's report we have a chart to show this.
After a number of false starts, it looks as though the XJO has finally broken out of the choppy range that had been in place since June (circled). As long as the XJO doesn't quickly fall back into the range, we should assume that it should continue on from here. Short term resistance is near 6,500. However, because we have been stuck in a trading range for so long, a successful break should see a decent move over the next few months, which means ultimately a retest of 7,000.
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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
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Disclaimer
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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