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ASX still exhibiting signs of weakness

By Grace Ormsby · April 14 2020
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egg

Invest

ASX still exhibiting signs of weakness

By Grace Ormsby
April 14 2020
Reading:
egg
ASX still exhibiting signs of weakness

ASX still exhibiting signs of weakness

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By Grace Ormsby · April 14 2020
Reading:
egg
ASX still exhibiting signs of weakness

There will be plenty of time to make profit safely in the sharemarket once the coronavirus-related uncertainty dies down, a chief analyst has advised.

Wealth Within’s Dale Gillham has said that while the market has been rising over the past two weeks, “it is still very indecisive and showing signs of weakness”.

The reason for this judgement “is because in six of the past 12 days, the market has closed higher than it opened”, the analyst offered – meaning 50 per cent of the time, it has closed lower.

“When markets or stocks unfold like this, it is a sign of indecision and uncertainty,” he stated.

“Right now, we know that the market is trading up, but the question is for how long. In my opinion, given the current indecision, it may not be for long. That said, a week can be a long time in the market, so only time will tell.”

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For now, Mr Gillham is of the belief that the best we can expect is that “the current upward move in price will continue for possibly another one to two weeks”.

“That said, we should also expect that the market could start to fall away again, especially if there is any bad news,” he conceded.

He advised that how long and how far the market travels up in price over these coming weeks, before falling away to test the low, will be key in understanding what might unfold over the rest of this year.

“Remember, if the market fails to rise above 5,900 points before falling to test the low, it is highly likely it will fall below the low of 4,429 points from last week,” the analyst offered.

“Right now, I encourage everyone to be patient and restrain from jumping into stocks believing you will grab a bargain.”

When the uncertainty does eventually die down, “there will be plenty of time to make some profits safely”, he concluded.

ASX still exhibiting signs of weakness
ASX still exhibiting signs of weakness
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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