The local market continues to remain above support close to the 2018 high on the weekly chart while remaining below the bottom of the upwards trend channel on the daily chart. A move down similar in size to the December 2018 decline would see a low in late October at around 5,950. Which way it moves from here only time will tell.
The local index is shown on the daily chart.
On the US [email protected] 500 index the current market funk is similar in length experienced during 2015/16 with a bit more volatility. This shows that periodic sell-offs and sideways moves are all part of the ongoing cycle of markets. While the US economy is basically strong Mr Trump’s tweets can move markets rapidly. A higher high and a higher low after the December low could be seen as a sign of strength.
One company to beat earnings expectations was Nanosonics which added 30 per cent yesterday.
Today Capitol Health posted some decent results and we bought a parcel for the “Educational” portfolio.
G8 Education disappointed and the shares fell after previously posting a series of lower highs similar to Capitol Health. You never know which way prices will break.
NextDC is trading at the bottom end of the current range and we bought a parcel today.
Altium is trading at the top end of the large sideways range after a previous spike down towards the lows.
Integrated Research is again trading close to previous support.
Macquarie Group continues to hold above the trend line.
Plumbing outfit Reliance may have turned the corner.
Disclaimer: The commentary and trading positions taken are for educational purposes only and are not an invitation to trade. Trading is risky and individuals should seek Professional counsel before making any financial decisions. Many thanks to Incredible Charts.com software for most of the charts used in the column.
Monitor, measure, manage and maximise… Cheers Charlie.