Technicals | Sep 26 2023
By Michael Gable
Volatility has picked back up again and both the S&P500 and the S&P/ASX200 indices have fallen over the past week.
However, it is very interesting to see how the Australian market is trading down at these levels. Our commodity stocks have come to the rescue and we have seen some serious buying step up over these past couple of days.
We remain bullish on materials and energy, despite the broader market starting to catch on to the fact that demand for traditional forms of energy is due to increase.
This week we have updated charting analysis of the S&P/ASX200 (XJO).
The trading range we often talk about with the XJO is still in place. Our last charting comment two weeks ago noticed that the range appeared to be tightening up, but last week's decline has negated that idea for now.
However, Friday's price action was very bullish. This is because after opening lower by over -100 points, the index spent the rest of the day moving higher to finish in the black.
Yesterday saw it once again rally off the lows. Price action from these past two days (circled) is very positive and once again indicates good buying at the lower part of this year's range.
The index is therefore likely to make its way up again from here. A fall under last week's low would be a negative sign.
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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