article 3 months old

Second Time Lucky For Afterpay?

Technicals | Jun 08 2021

This story features AFTERPAY LIMITED. For more info SHARE ANALYSIS: APT

By Michael Gable 

As mentioned last week, the Australian share market should just continue to grind higher from here, now that it has pushed to new highs. In terms of individual sectors, there continues to be a lack of consistency and the comment "it’s a funny market" is being heard quite often. However, we still remain bullish on cyclicals such as resources, financials, etc, and one such sector has had a nice bounce in the last week – energy.

In the US, the Nasdaq seems to be holding up fairly well and bouncing off its 100-day moving average. Whilst risks still remain in the tech space, we have taken a look at the chart of Afterpay ((APT)).

Until early May, $100 was a strong support level for APT. It then fell through that a few weeks ago before trying to rally again. That rally fell short at $100, but instead of being sold off sharply, APT shares have only drifted sideways instead. This is potentially a positive and it could mean that APT is getting ready to make another move above $100. For now, it is worth keeping on the watchlist as a possible trade on any break above $100.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
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

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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For more info SHARE ANALYSIS: APT - AFTERPAY LIMITED