Technicals | 11:25 AM
By Michael Gable
During the past week, we have seen the financials bounce as anticipated, but the broader market took another small dip before bouncing yesterday.
Investors in the US remain on edge with overnight moves wiping away the gains seen on Friday night. Not only have there been concerns around tariffs again, but nervousness around the strength of the US economy is also grabbing the headlines with GDP forecasts from Atlanta Fed being marked noticeably lower.
Whichever way you want to justify it; it creates an environment where short-term volatility remains elevated and short-term moves are impossible to predict.
Having said all of that, US markets do appear to be holding onto some key support levels, so in the next few days we will have a greater understanding as to whether markets are ready to shake it all off and rally again, or get a bit more panicky and bring the indices down a bit further.
Today, we offer a technical view on the Nasdaq100.
The NASDAQ has been trending higher since early 2023. Along the way it has been respecting the 200-day Moving Average (blue line).
Recent weakness has now seen it fall back to that 200-day MA. As a result, we are neutral on the short-term prospects until we can see a bounce from here.
That is, a rally off this level would be a positive sign. A break under this line could result in lower levels in the short-term, possibly back towards the mid 19,000 area before we can reassess.
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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