Technicals | Jan 16 2024
By Michael Gable
US markets were closed overnight but there are still a few interesting developments in the Australian market.
Our index itself has had some very interesting price action the past few days and this means that it is close to showing its hand and telling us what direction the next move will be in.
Today's report has an updated chart of the S&P/ASX200 Index.
Our most recent commentary on the XJO has stated that longer-term it looks bullish, with an eventual break above the 7600 being the trigger for a larger rally above 8000.
Short-term, however, we can see that the market has been overbought and is due for a consolidation. At the moment, we can see that the market is holding in at current levels fairly well.
However, we have noticed that the trading range is tightening up (circled).
This means that we are probably a day or two away from a decent sized move. Mostly likely this will be to the upside, but we need to wait and see.
The bottom line is, the next large move on the XJO (which is due in a day or so) should tell us what direction it will head in over the next few weeks.
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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