Technicals | 11:00 AM
By Michael Gable
Share markets have largely gone nowhere in the past week, reflecting the fact that events in the Middle East do not appear to have any long-term implications for the share market.
As we mentioned last week, our view on oil was neutral. It was up at resistance and had some hurdles to overcome. We commented that "prices have rushed up very quickly to the downtrend line which puts it at risk of stalling here for a while".
As a result, overnight we have seen it back to where it was two weeks ago. Yesterday's headlines of "what does US$100 oil mean for the market?" have already aged badly. Oil needs more time to find support before it can head higher. News-driven volatility like this is not how you end up with sustained moves.
The price of gold is also back to where it was two weeks ago. Interestingly, it hasn't made any large movements on the back of this Middle East conflict, which is a good sign - we don't want to see too much news driven volatility. The trend in gold therefore continues to look sustainable.
Today, we offer a technical view on Worley ((WOR)).
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