Technicals | Jan 17 2017
By Michael Gable
The S&P/ASX 200 Index has eased back over the last week as predicted, but there is still some life in the small and mid-cap space. US markets were closed overnight and with Trump being inaugurated on the 20th, it is likely to be a quiet week. One of our recent trades in Sandfire Resources (SFR) is now showing signs of making the next step higher, and we also identify another trading idea with Liquified Natural Gas Ltd ((LNG)) breaking out and looking very bullish.
Most of 2016 was a base building exercise for LNG, except for a brief spike up in June. It now looks like the stock is on the move again, with it on the cusp of breaking out of this year-long base. It looked like it was building up towards a move during the last few weeks, finally breaking out of an ascending triangle last Thursday. It then followed through with a big move up last Friday on volume. It is now finding some resistance here just above 80c, but it looks it poised to retest the high 90c levels again. If it can crack that, then we expect it to make a move towards $1.20. Traders are advised to trail a stop with LNG to see how far it can go.
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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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