The local market has been slowly pegging back the sharp falls from the recent high and is yet to reach 50 per cent of the range down which could also be a potential resistance level. The local market is quite weak today after strong gains in the US overnight and looks to be forming a bearish flag type pattern.
The price of gold has remained strong after breaking out of a sideways pattern and above the downtrend line and has hit the first target zone where some consolidation could take place. The month of August has seen some trend defining turning points in the past.
The local gold stocks are down today and some have reached possible resistance zones near a previous high point including Alacer, Newcrest, Silverlake and Resolute shown below.
Other gold stocks like Perseus look to have more room to move. One reason Charlie has diversified holdings even in the same sector is you never know which stock is going to perform better after the initial breakout. Stocks all form different breakout patterns at different times. Most gold stocks are down today after having a great run up.
Western Areas gave a buy signal on the daily chart last week and is at the lower end of what could be a bottoming pattern. We have had a few bites at this one and you never know how any trade will pan out.
IPH and Megaport show similar consolidation patterns at the recent highs and a break up from these levels could provide a trading opportunity.
CSL is up today after announcing profit was up 17 per cent on a constant currency basis.
Goodman Group has had a brief spike lower and remains above the trend line for now.
JB Hi-Fi posted good results and is again at the top of the currently wide range.
Oz Minerals has been consolidating for a while and could be building for a breakout above stubborn resistance.
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.