Market breakout! Why being bullish is paying off

by Michael Gable

The market has finally broken to the upside of its recent range and should track higher. I can go through a list of stocks that I have spoken about in Stock Watch over the last couple of months such as MFG, RMD, WOW, VOC, ICQ, TLS, BHP, WES, FLT, JBH. Some have already run hard, others are just starting to turn around and therefore can still be bought down here.

With the recent breakout in the market, those that have not moved much yet should now start to make some serious headway. When I look at the chart of the ASX200, you will notice that it has been forming a rectangle. By breaking out of that now, we should expect to see it move higher in a range about equal to that of the rectangle. That takes us up to about 5700. So unless the market collapses in the next few days and deems this breakout to be a "false" breakout, then investors should consider ensuring that they are invested in order to participate in the next phase of the rally. 

Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.