Technicals | Oct 25 2022
By Michael Gable
The S&P500 Index has managed to hold its lows and is now breaking out of this small base. By doing the work at these levels, it is now looking like we should get a relief rally from here – similar to what we saw in March and July. It is too early to be calling the recent low as "the low", but investors should now feel a bit more confident in adding long positions for the short term.
Until we get evidence of lower CPI and central banks pausing on rate rises, then any rallies need to be treated more carefully as short-term opportunities.
Today's research has a chart on the S&P500 Index.
The S&P 500 Index produced an "outside day" when it made its intra-day low two weeks ago, which was a positive.
However, that could have easily failed. The key was to observe whether we get any follow-through to the upside.
The last two days have confirmed this.
This means that we should at least get an upside move in the next few weeks. Once again, the major resistance level to watch is the 200-day Moving Average (blue line).
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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.
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