Technicals | Jan 24 2023
By Michael Gable
Share markets continue to sit at difficult levels here. The difficultly is because the S&P500 Index is at a major resistance level, and the S&P/ASX200 Index in the past few weeks has disconnected from the US and given us a V-shaped rally where it is now looking overbought.
We are not calling for a big sell-off from here, but the risk/reward for any new trades right here is not very good at the moment. We still need to see clearer signs on what the next path is likely to be.
This week's report has a chart of the S&P 500 Index to show why current levels are being closely watched.
The S&P500 Index remains at a key level here. Overnight, it has managed to close marginally above the downtrend line and the 200-day moving average.
If it can hold here for a few days, and push above 4100, then we would be looking for a retest of the August high near 4300 as the next upside target.
However, any sharp moves down for here, especially a dip under 3900, would open it up to lower levels where we would be targeting support in the 3600-3700 region.
At the moment, we need to wait and see.
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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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