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Wile the XAO fell again this week its general trajectory over the past 3 weeks is up. There is overhead resistance around 7,750 and price got very close to that last week before falling back. It’s hard to say whether price will recover and break higher (hopefully through that resistance), or fall back to the 7,500 level again. In short, the market continues to tread water with concerns over COVID and inflation a drag on investor confidence.

My Stocks to Watch last week generally moved up with FMG, ILU and PLS all gaining 5% or better. I’ve removed FMG this week. While still rising it has reached my target and I’d expect it could fall back. I sold my own holding Friday to crystallise profits. I’ve added RED and TLX as both are at or above resistance and could be expected to go higher (RED has a potential 15% gain to my target and TLX 10%-15%). TLX shot up the week before last and fell back a little this week as might be expected.

My own trading was up on the market again this week – well it would have been, was it not for CSL falling back 8% after funding one of the largest takeover offers the world has seen ($6B) by a discounted share issue. I’m expecting they will bounce back but it could be a long time before they get back to pre-fall prices.

As a trader there is little in this market to get excited about and the conservative amongst us need to just keep putting one foot (trade) in front of another while closely managing open trades.


Robert Norman

Phone: 0428 346 951

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