Technicals | Feb 19 2013
By Michael Gable
As markets continue to head higher it becomes more difficult for investors to find opportunities that haven’t “run too hard”. You’ll remember in my note from last week that I looked at the energy sector as an example of one that should outperform. Coincidentally, we have now seen some break outs across a number of energy stocks. Woodside Petroleum ((WPL)) and Santos ((STO)) in particular are starting to head much higher and are worth picking up from an investment point of view or as a good short/medium term trade. Another stock that hasn’t run yet but looks as though it is about to break out is Western Areas ((WSA)).
ASX 200
The buying continues even while the Dow Jones consolidates under its all time high. It starts to suggest that we are likely to enter a period of outperformance in comparison to the Dow. There is an area of resistance between 5145 and 5175 so at this rate you would assume that the market should head up there. As we can see on the chart, we are in a very overbought situation, but its too early to call a pull back until after the fact. With 5000 now having been cleared, if we do take a breather I would prefer to see a consolidation occur on top of that level. Otherwise if the eventual pullback does go deeper, I would be looking for downside towards 4900. The worst case scenario is 4600.
Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).
Visit Michael Gable's website at www.michaelgable.com.au/.
After leaving Macquarie Bank's Securities Group in 2008 after many years of service, Michael has gained a highly regarded reputation in the financial services industry. As a Private Client Adviser with Novus Capital, Michael has become a popular live commentator and analyst for Sky News Business Channel’s “Your Money, Your Call” program. He is also the author of the weekly stock market report “The Dynamic Investor”.
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management.
Michael 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
Disclaimer
Michael Gable is an Authorised Representative (Rep. No. 376892) of Novus Capital Limited AFSL 238168 ACN 006 711 995. Michael Gable and Novus Capital Limited, their associates and respective Directors and staff each declare that they, from time to time, may hold interests in securities and/or earn brokerage, fees, interest, or other benefits from products and services mentioned in this website. This website may contain unsolicited general information, without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you must consider the appropriateness of the information in this website or the Product Disclosure Statement (PDS) or Financial Services Guide (FSG), having regard to your objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance. Michael Gable and Novus Capital Limited believes that any information or advice (including any securities recommendation) contained in this website is accurate when issued but does not warrant its accuracy or reliability. Michael Gable and Novus Capital Limited are not obliged to update you if the information or its advice changes. Michael Gable and Novus Capital Limited and each of their respective officers, agents and employees exclude to the full extent permitted by law, all liability of any kind, in negligence, contract, under fiduciary duties or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, to the extent arising from or in connection with this website.
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.
