Technicals | Dec 21 2021
By Michael Gable
Markets are clearly not providing investors with a Santa rally and continue to trade at levels seen back in June. Our call that resources stocks seem to be the main game at the moment is still holding true for now. In this week's report, we have a chart of the S&P/ASX 200 Index (XJO) to show how it seems to be tracking.
The range on the XJO is starting to tighten up and we may be close to some sort of resolution. It is once again struggling to get back above the 50-day moving average, and it has been making lower highs since August. On the positive side, it seems to find some good support near 7200. If the market can get back above the 50-day moving average and put in a higher high, then we can be confident that it is ready to rally higher again. Otherwise, a clear break under 7200 would be a negative and investors should then get ready for lower levels.
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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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