Technicals | Feb 22 2022
By Michael Gable
US markets were closed overnight, but the choppiness continues for now. After the falls at the end of January, stocks need some more time to develop some good set-ups. Today's research has a chart on a stock which is not ready now, but we can see that it is starting to shape up as a potential buy and it should just be a matter of time now — Allkem ((AKE)).
[Note: Allkem was created from the merger of lithium miners Galaxy Resources and Orecobre.]
In the back half of 2021, we saw AKE form an ascending triangle with clear resistance near $10. After breaking through that and rallying towards $12, it then fell sharply on increased volume. Over the past few weeks however, we have seen it consolidate sideways again back in the range. It is a positive sign to see it hold up well and it is therefore one to keep an eye on. If we can see it break through $10 again, then that would be the buy signal.
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
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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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