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As for last week, whether you made or lost money this week will have depended on your exposure to various market sectors with the energy sector rising 8.5% while the gold sector fell 3.5%. As I both held no energy stocks and was a bit heavy in gold, needless to say my own results for the week were negative – down 3.0%. That said, the outlook for those laggards remains positive and, as is usually the case in trading, the market likes to test traders resolve, and almost always I find that backing my analysis ultimately proves to have been the right course of action.

Also sticking the knife in were WGN (down 12.4% for the week) and TRS (down 6.0%). WGN can be a little volatile and this week showed signs of price manipulation with price pushed up only to be dumped and fall before doing it all again. WGN’s price remains above trend and my analysis suggests it should recover and still make my target. TRS issued a profit downgrade due to Covid issues impacting retail buying patterns. It was down 15% from last weeks close at one point but recovered a sizeable chunk of those losses to (importantly) close back within the pattern it has been making. a weekly chart. The downtrend that has developed over the last couple of months could have been the result of some investors foreseeing the poorer trade performance. I’ll hold for now.

Gold has broken above the downtrend that has been in force for the past 6 months. It has also confirmed a new uptrend and is making higher troughs and peaks on the weekly chart – all of which are buy signals. Recently price has risen at a higher momentum than the trend line implies and as such some consolidation could be expected with price falling back to trend (a fall of about 3% - 4%).  See my gold sector analysis here.

My Stocks to Watch were in the main not worth watching last week with TMT and SLR both falling 13% for the week and DEG down 8%. EOS was the only stock to trigger a buy and that moved up 14%. All the picks from last week (even those that fell heavily) have the potential to recover and have been left in the listing. SXY has been removed because it rose 8.6% this week and is now too close to its upper price channel boundary to be worth considering an entry - but see my energy sector analysis which also references SXY.

WPL, PLS, STO all presented charts worthy of inclusion in my Stocks to Watch this week. WTC was another contender, but some nagging concerns worry me re its otherwise promising outlook.

I thought it might be interesting to look at the energy and gold sector indexes to see what they told me and compare some of the players in those sectors with the index. Have a look at ENERGY and GOLD in Stocks to Watch.

Contact

Robert Norman

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

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