Technicals | Jan 30 2024
This story features CHARTER HALL GROUP. For more info SHARE ANALYSIS: CHC
By Michael Gable
US markets continue to trade to new highs, which is a great sign. The latest US Personal Consumption Expenditures (PCE) Index figures were released on Friday and it came in at 2.9% for the year, versus an expected 3%.
The PCE is the US Federal Reserve's preferred measure of inflation. Once again, it shows inflation heading the right way and provides evidence that restrictive interest rates will be lowered this year.
All of this is in the backdrop of a strong US economy. No wonder 2024 should be a good year for stocks.
The Australian market, however, is approaching its all-time highs, so it seems logical that our market will start to slow down as soon as we hit that major resistance level.
However, we still remain confident that a break to new highs will occur sooner than later and we maintain our view from several months ago that the S&P/ASX 200 Index will be trading above 8000 in 2024.
With markets having had a nice run over the past week, the range of stocks that don't look too stretched has fallen, but we still have some buying opportunities.
We offer a technical analysis view on Charter Hall ((CHC)).
CHC bounced strongly off the lows in November, and then formed a short-term top after gapping up in December.
The share price has since eased back but we have noticed that has done so in the shape of a bull-flag (diagonal blue lines).
Not only that, but it has nicely filled the gap that was created in December. This is potentially setting up CHC for a new trade where an upside break of this bull-flag will be the buy trigger.
That is, a close above $11.85 would be the next buy signal. If that were to occur, then we would be looking towards $14.00 as our next target.
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
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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For more info SHARE ANALYSIS: CHC - CHARTER HALL GROUP