Positive Undercurrent For Macquarie Shares

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This story features MACQUARIE GROUP LIMITED.
For more info SHARE ANALYSIS: MQG
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities suggests a positive trend is now guiding shares in Macquarie Group rowards $230, and beyond.

By Michael Gable

By Michael Gable 

US markets were closed overnight but we have seen enough in the past few days to be a bit more cautious on US indices at the moment.

We have previously highlighted the positives in the breadth of buying extending out to other parts of the market.

That is, although the large cap stocks had done all the heavy lifting, seeing the buying spread out to other areas of the market would help ensure that the index continues to drift higher.

However, the large cap US tech stocks are not just stalling here but we can now see that they are turning lower. This is not great from an overall market point of view, but if we ignore the index and focus on other areas of the market, we can see that there isn’t a broad-based sell-off, it is a rotation.

So, whilst some investors are chasing tech stocks in the belief they are only going down due to misguided concerns on AI, we believe they are missing the point. Tech stocks peaked months ago.

Gold has more than doubled since we identified the major breakout two years ago. There is a bigger rotation underway and we would not be trying to step in front of that and be buying high-duration growth assets like tech stocks.

Blaming recent weakness on AI is a red herring. Yes, there will be violent bounces along the way which may question some investors’ beliefs as to whether we have seen the lows in tech, but our advice is to avoid the temptation to buy back in to those sectors.

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

We last looked at MQG on 16 December and noted that “most of the sellers near $200 are now gone and it should allow MQG to recover from here”.

We can see that since then, it has trended steadily higher with good buying support on any dips.

MQG remains a buy on any dips and we expect it to continue trending higher.

There will naturally be some resistance near $230, but a break above that would ultimately provide investors with another buy signal.

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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