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The market remains in limbo with an 0.4% rise this week. It is conceivable prices could fall further next week to around 7125 but from there (or current levels) I’d like to think price could rise back to 7,500 (which remains my theoretical market top). As noted previously, this remains a time to be cautious and conservative.

My student portfolio and my own trading mirrored the XAO gaining 0.4% and 0.5% respectively.

This week I topped up holdings in ENV, NCM and WGN and sold the last of my small holdings in FLT and OSH as lost causes.

EVN was the best performer for (up 5.8%). While 3 out of 4 of my trades rose for the week SGM fell by 5.4% and MVP by 8.1%. SGM fell back to trend and I expect that to rise next week. MVP is more of a worry but it has fallen back to a support level that has held since 2014 – so again, a good chance of turning up.

While picking stocks likely to rise based on charting is less successful in a falling or sideways market, 4 of my 6 Stocks to Watch rose last week and the overall average rise of the 6 stocks was 2.5%

Gold moved up strongly last week (2.4%) making it the longest and most consistent rally in the precious metal since June to August last year. Gold is still 20% above a line of support the price has held above for nearly 20 years. It is likely price will at some stage fall back to that support so there is always the chance this rally could evaporate. Price closed at an overhead resistance level on Friday and next week will determine if that resistance turns price down as it has before or (hopefully) the rally has sufficient momentum to break higher. See my chart here.

While numerous stocks are making positive patterns with the overall market in a state of anxiety/indecision this negativity often means that patterns don’t realise their potential – it’s a bit like swimming upstream! That said 3 out of 4 of my Stocks to Watch last week made good gains (2.5% overall average for the week). This week I’ve added SPL, EOS and DEG. While not blue chip stocks their charts all show potential and with the exception of DEG are all coming off lows. CUV and PNV were also strong contenders for listing and anyone with an interet in STO and/or WPL should check my updated comments on my Stock Commentary page.

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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