The local market is making higher highs and higher lows and looks to be working the way back to previous highs.
This is an interesting look at the US S@P 500 index which includes the “Magnificent 7” big stocks contained within it. With all the talk of AI bubbles a comparison to the dot.com bubble era shows the current market could go higher before having the same “speed line” as back in the late 1980’s and 1990’s. If the current trend were to roughly equal that of the dot com era we could reach a target of 9,270. The same cycle in time gives early August 2026.
Former market darling CSL looks to be forming a down sloping wedge pattern which can lead to higher prices if the pattern runs true to form. Time will tell how it works out.
Small cap stock Echoiq has blasted higher the past few days.
Australian Foundation Investment Company has been in a sideways move for a few years now. Some people like it for the 4.5 per cent fully franked dividend that comes from holding most very large companies.
The locally listed and unhedged Fang ETF of US technology stocks just moved below and area of previous support as a rising Australian dollar makes an impact.
This shows that although the capital spending of the big technology companies is very big it is yet to reach the same heights in GDP terms as the money poured into railroads back in the day.
This chart of light crude oil shows a recent break and retest of the down sloping trend line.
The Sprott physical uranium ETF recently broke out of a head and shoulders type pattern with a target just above a previous high. A rising uranium price could be good for the local miners.
Greenland has some rare earth wealth but to date has no production. Might be a tad frosty in the winter.
Disclaimer: The commentary on different charts is for general information purposes only and is 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. Cheers Charlie.
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