Macquarie Shares Poised For Sharp Bounce

This story features MACQUARIE GROUP LIMITED. For more info SHARE ANALYSIS: MQG

By Michael Gable 

Last week’s bounce in the S&P500 Index failed to follow through and the past couple of sessions has seen it retest the recent lows before bouncing during last night’s session.

The S&P/ASX200 Index has seemingly fared better, still trading above its March lows, no doubt helped by a rotation of funds into value and hard assets such as commodities.

It does appear as though the “crowded” trades of 2024 have been hurt a bit more in the short-term.

Speaking of hard assets, the price of gold has continued to see some strong buying. Since we started becoming bullish again on gold in late 2023, it has rallied from under US$2000 per ounce to now go on and make new all-time highs at over US$3100.

The overall trend still looks very strong, but it would be healthy for it to now cool off for a little while and get ready for the next move higher. The catalyst for this may very well be the announcement of tariffs on 2 April in the US.

With share markets having fallen hard into this event, and sentiment measures as low as what was seen during covid and the GFC, it does create a real possibility that share markets rally strongly after 2 April.

Unexpected bad news on 2 April could see markets take another dive, but they seemed positioned for the worst and usually that leaves us open for a relief rally.

That could see oversold stocks bounce back strongly and it might take the shine off gold in the short-term.

However, gold has been rallying for over a year now, well before tariffs were the topic of the day, so that is telling us something. Any potential profit taking in gold would just be an opportunity to buy the dip in a greater uptrend.

Today we offer a technical view on Macquarie Group ((MQG)).

After the sharp decline in March, Macquarie slightly undercut the August low before bouncing on strong volume.

It formed a morning star’ reversal (circled) along with generating buy signals on the daily MACD and RSI.

MQG tends to reverse strongly off sharp declines which means that we have a buying opportunity right now.

Initial stops can be considered back near $193, otherwise the next major support level under that is near $180.

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

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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