Technicals | Jul 05 2016
By Michael Gable
In the space of a week, the S&P/ASX 200 Index has rebounded back to its pre-Brexit levels. Even if there could be minimal effects on our economy in the long run, there is still uncertainty around what it all means. With the Australian election proving that political outcomes this year are "frustrating" for want of a better word, our market is likely to take a more cautious tone in the short term. V-shaped bounces in our market often see a retest of the previous low anyway, so getting back into our bearish ETF could prove a nice hedge and most stocks could probably be bought at cheaper levels over coming days/weeks.
Today we look at Automotive Holdings Group ((AHG)).
AHG has found some strong support here and last week saw a bullish reversal on good volume. Momentum indicators suggest the downwards trend from the start of this year is ending and we expect AHG to now head higher. There will be some resistance near $4 and then again near $4.20. Full year results in August are likely to be the major catalyst for the stock.
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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
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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.
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