Technicals | Jul 12 2022
By Michael Gable
The S&P500 Index had a good week after making its "higher low". It looks set to consolidate here just under 3900 for a day or so, but that should give it the energy to make a bit more of a bounce.
Today's report has a chart of the S&P/ASX200 Index to show how that is being translated to our index. Once we get a bit more confirmation that markets are going to bounce in the short-term, then that should reveal a number of trading opportunities.
Further to our recent commentary on the S&P500 Index making a "higher low" and getting ready to bounce in the short-term, we can see the S&P/ASX200 Index also shaping up for a move, potentially like what it did in March.
Following the large move down in June, the Index bounced higher before tracking sideways again. The range is tightening up which means we are getting close to a break in either direction.
A push above 6700 would be viewed as a positive, and a move above the 28 June peak at 6763.64 would be confirmation of an upside break.
From there we would have to reassess as we are not yet confident that any potential bounce from here is merely a "bear market rally" as the Index can eventually go back or even exceed the June lows at some point.
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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