Technicals | Feb 28 2023
This story features XERO LIMITED. For more info SHARE ANALYSIS: XRO
By Michael Gable
The past week on the market ended up being more negative than we suspected.
The S&P500 Index has pulled back to retest its 200-day Moving Average, and the S&P/ASX 200 Index has tested major support near 7200. That 7200 level is the 50% retracement region of the January rally and it also sits on the uptrend line that has been in place since the October low.
It will be interesting to see if we get some support here in the next few days because that would open up a new set of buying opportunities.
There are not many clear buying set-ups right now because of the recent weakness. However, we do see some stocks that are getting close to giving a buy signal, and we have a chart today on Xero ((XRO)).
XRO appears to be forming a base here.
We have seen higher lows since November and the start of February saw it break above resistance on good volume. It is now easing back to retest that breakout.
If we can see buying support step in here and XRO can push above its February high of $85.50 in a quick amount of time, then we can treat that as a buy signal.
For the moment, XRO is one to keep an eye on.
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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For more info SHARE ANALYSIS: XRO - XERO LIMITED