Charlie's Charts 19th July 2017

The local market is still trading in a sideways range with the banking sector looking weaker. The financial index closed lower yesterday and is up today as indecision takes hold.

The local index is still going sideways and some range traders have been doing well trading the smaller moves. Some technical systems have been increasing their cash holdings and looking to redeploy later when markets are trending.

The price of gold has bounced up from the support area around $1,200 and could run into resistance near the recent trend line break. The big sideways movement between $1,200 and $1,300 has contained the price for a while and breaking out of that could signal a decent move.

The US [email protected] index is showing a divergence between price and the MACD oscillator which could signal weaker price ahead.

We were caught out on a big drop in the Emefcy price and sold half our stake while still liking the longer term prospects.

A weekly chart of the Australian dollar shows the recent move toward 80 cents after making a higher low.

The strength of the Australian dollar could impact on a few companies in our educational portfolio including Altium which is close to being stopped out.

Even though the market index has been going sideways a few companies including Integrated Research have been moving higher.

A few fund managers have been moving up including Pinnacle.

We took a second smaller position in Pacific Current as the price looks to be consolidating above the recent break and we have our stop in place.

Mantra is one stock that could benefit from the increase in tourist numbers.


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 software for most of the charts used in the column. Monitor, measure, manage and maximise…Cheers Charlie.