Technicals | Oct 26 2021
This story features GOODMAN GROUP. For more info SHARE ANALYSIS: GMG
By Michael Gable
Share markets continue to remain remarkably resilient and price action is telling us that they should continue to grind higher from here. The S&P 500 Index has hit an all-time high and we may therefore see a few days of consolidation. However, it looks set to continue this remarkable run of "buy the dip". In today's research, we have some charting commentary on a REIT which looks attractive here – Goodman Group ((GMG)).
Market consensus is that inflation is out of control and interest rates are going up sooner than expected. Despite this, REITs, which do not like rising yields, are being bought. The consensus view of rising rates is very one-sided, in our opinion. That provides an opportunity to profit if the consensus is wrong, and REITs are already starting to display that sort of contrarian price action.
Goodman Group fell under the $22 support level in September, but it managed to find some new support near $21. The move higher from mid-October looked particularly bullish and the last few days has seen it get back above $22.
Momentum looks strong here for Goodman Group and it is likely to continue its uptrend. Now that it has also breached the downtrend line that was in place since August, we now have even more confidence that it can head higher and current levels still represent a good buying opportunity.
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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For more info SHARE ANALYSIS: GMG - GOODMAN GROUP