Technicals | May 10 2016
By Michael Gable
Well we finally did it. From under 5000 we set a target of 5350 for the S&P/ASX 200 Index (XJO) and we got there. The market didn't go down to the mid 4000's as many bearish commentators were predicting several weeks ago. But do we now sell everything because we are in May? Apart from the fact that half the market is going to move on just the top 20, you can read our XJO commentary this week on what the technicals are now suggesting will happen from here. We are happy to take profits on stocks that are overbought and expensive, but with the market up here, don't let that dissuade you from picking up other opportunities.
Our 5350 target on the XJO has now been reached. Apart from the sell-off last Wednesday, our market has generally seen some good buying on the dips over the last week. We expect it to spend the next few weeks trading in a band between 5200 – 5300 with a possible dip towards 5100. Support near 5100 in our opinion is likely to be the lowest point for the XJO between now and the end of the year. If that proves to be false, then we will reassess our targets. But if the market can undergo a flat consolidation under 5300, that would mean an attempt at 5300 would see it break out of the current range that started back in August last year.
|
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.
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
.jpg)
Disclaimer
Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
