The local market again hit an intraday high in early trade yesterday on the back of strong overseas moves only to fall back in afternoon trade. The index is having a hard time moving above the resistance zone where we took some short-term profits.
The four hour chart of the local index shows it moving above the short-term downtrend line where we bought. A break below the recent swing low would see us exit.
Resource stocks have been leading the way higher as the big iron ore miners power ahead.
Fortescue Metals has moved above the $7 resistance zone and with a lot of potential ahead we added to our position. The announcement of the development of a magnetite mine does not fill us with confidence as many of these in past situations have cost shareholders a lot, perhaps Fortescue can pull it off where others could not, time will tell.
Hub24 is another company having a hard time moving above past highs during the past year. A number of higher lows show that there is some strength building.
Western Areas had a nice weekly rebound and we bought back in looking for a better result.
Macquarie Group has just moved above recent highs and could be setting up for another move higher.
Jumbo Interactive has been moving up strongly since overcoming resistance around $8.
Under pressure from the shorts Syrah has posted the first higher low for some time.
NRW Holdings has made a nice higher low.
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.