Follow us on our Journey

With an overheated market such as we currently have anything will trigger a pullback and a week or two of lower prices could be expected. Our market fell by 2.2% (XAO) last week on issues such as Covid being rampant in Victoria and NSW, the US Federal Reserve proposing to reduce stimulus, and some profit results falling short of investors’ overly optimistic expectations.

Interestingly, from a charting perspective, price fell exactly to the upper boundary of an underlying long term price channel (see my web site for XAO chart and detailed analysis). That support could see price rise. Price also fell into a time line (vertical black line on chart) which, without getting into detail, also suggests a likely price rise next week.

Gold seems to be on the brink of a recovery. See my analysis here.

My own portfolio fell by 0.8% and a hypothetical long-term ‘How to Trade’ portfolio I run for training purposes fell 2.0% but is still 19% up over the past 9 months since it started. My biggest falls were COH, ILU and NCM – all down about 5.3%. Biggest risers were FPH (up 6.7%) and ASX (6.2%).

I’ve deleted several stocks from my Stocks to Watch page

AIA: Should still break higher out of its sideways pattern but timing uncertain due to ongoing Covid issues.

COH, LYC and SWM: All fell sharply last week and while they should recover their previous outlook is negated for now.

EOS: Needs to break downtrend but price is falling away.

I have added FPHand MQG to my list.

Contact

Robert Norman

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

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