Technicals | Sep 05 2023
By Michael Gable
Our anticipation in late July/early August of a -5% decline in US markets before "buying the dip" steps in seems to be on the mark at the moment.
We've noted over the past few weeks that extreme negativity around China and resources couldn't get any worse, and that this area was the next opportunity to focus on.
Resource stocks and energy stocks further show that they have bottomed and therefore have further to run from here.
As a result, our charting commentary this week is on Allkem ((AKE)).
After bottoming in mid-August, AKE rallied back towards resistance around $14.20 before consolidating under it.
It is now breaking through resistance (circled) and volumes have been healthy. This is the next buy trigger. We expect AKE to go on and retest the old high near $17.
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• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
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