Technicals | May 10 2022
This story features JB HI-FI LIMITED. For more info SHARE ANALYSIS: JBH
By Michael Gable
After the US Federal Reserve raised rates last week, we managed to get a one-day bounce on the S&P500 Index, before it failed to follow through on the upside.
This has of course put the US markets on a more negative footing, and the overnight fall to new lows is further confirming that we need to be prepared for some more downside in indices. Targeting support levels is meaningless at the moment, we just need to continue to observe price action and let the market tell us when it is finding some good support.
If we do lead into a capitulation, then these support levels may come in sooner than expected.
For this week's research we have analysed JB Hi-Fi ((JBH)).
Over the past year, JBH has been range bound between about $43.50 and $54.00. A few weeks ago, it managed to break above resistance, but it failed straight away and was back into the range.
With it then failing to quickly recover, and looking at the way it has started to sharply come back these past few days, the odds are that it heads back towards support near $43.50. A break under that level would be a negative sign.
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
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.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
Click to view our Glossary of Financial Terms
For more info SHARE ANALYSIS: JBH - JB HI-FI LIMITED