Technicals | Mar 25 2014
By Michael Gable
The short term bearish tone continues and patience appears to be paying off. We made of note of mentioning interest rates last Tuesday and this was then used as an excuse for the savage sell-off last Thursday where the likelihood of rates going up in the US now appears to be higher than expected. It’s not good for gold prices at the moment. On the back of this market weakness that we’ve been talking about for a month now, we have inserted a chart of the ASX200 in today’s report to show exactly what levels we are looking at.
ASX 200
On this daily chart we can see the negative market action quite clearly. Not only are we seeing lower highs and lower lows, but the down days on the market are very large and impulsive. Going back to October, you will notice plenty of “white candles” when the market is rallying and then plenty of “dark candles” when the markets are getting sold off. We are expecting the market to find support close to 5230. However, it that cannot hold, then much strong support exists around the 5080 level. Once this current pullback is over, whenever that may be, we would then expect our market to try to push to new highs.
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.
