Invest
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.
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.”
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.
RELATED ARTICLES
About the author
About the author
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
