Technicals | Aug 01 2023
By Michael Gable
Better-than-expected CPI numbers last week saw our market finally break above its recent resistance level.
However, the Australian market seems to have a knack for breaking higher just as the US markets are ready to take a breather. We expect US markets to cool off here, but we are not expecting any sharp pullbacks.
Today's research has a chart of the S&P/ASX 200 Index to show what it might do from here – bearing in mind the RBA interest rate decision today. As markets stall here, we have our eye on a few potential opportunities.
It is a positive sign that the XJO finally broke above the resistance line near 7400.
However, it had run fairly hard during the past few weeks and is in need of a breather here. Trading sideways above 7400 would be ideal and prepare it for the next move.
Otherwise, it is going to dip, we don't want to see it fall below 7300 as that could open up a retest of the low 7000's again.
Longer-term, we maintain that an eventual retest and break of the all-time highs near 7600 is a possibility in 2023.
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)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
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
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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