Technicals | Apr 05 2016
By Michael Gable
The RBA meets today and although most expect rates to stay on hold, the focus will be on the commentary. With the Australian dollar having lifted recently on the back of US dollar weakness (with US rates looking to be on hold for now instead of going up), it will be interesting to see the RBA's reaction.
The overall market is lacking any other major catalysts so it continues to hold these levels for now. But being stuck in the middle of a several-month range cannot last forever and even a news vacuum could be enough for movement to start happening again. Whether the bulls give up buying the dips, or the bears run out of stock to sell into rallies remains to be seen, but we favour the latter. We are still eyeing that move over 5300 as noted in today's chart of the S&P/ASX 200 Index.
We noted a few weeks ago the break of the inverse head and shoulders. As we can see on this chart, the recent pullback has seen the market retest that "neckline". Stability here on the market could see it resume that upwards movement towards our target near 5350.
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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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