Fundamental & Technical Trading Ideas for the Active Investor

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1 Fundamental & Technical Trading Ideas for the Active Investor What We re Watching 22nd of May, 2017 Dow Jones Industrials Index ($DJ) A small consolidation period looks underway at the moment. Probability would suggest a three wave pullback to make a marginal new low is the most common type of pullback. Because of the strength of this trend we could get a pennant style pullback which would be the shallower of the two pullbacks and this is also quite possible. Overall the bullish trend still looks very much in control here and this current pullback looks just like a small pause here and should be a small consolidation period. We may see another 1-2 weeks of consolidation here but overall the trend is still very firm and I still believe we ll see the 100% expansion of the previous range achieved at

2 S&P ASX 200 Index (XJO) The previous short term high at 5810 was an important support zone broken last week. This is a short term negative but not uncommon in these 7 th year rallies which are full of short and sharp pullbacks as part of a larger bullish trend. Historically we see a lot of overlapping highs and short sharp pullbacks in these strong 7 th year rallies so it is the year where are a few rules do get broken. As indicated last week, the index has been a bit messy of late so we need to be a bit more forgiving of the pullbacks. The 1/8 of the range is one support area right now and the next support is back at the previous mid year high at The overall trend is still bullish but the overlapping nature is making it a bit trickier to read here and I still see a new high above 6000 coming around July / August timing. Commonwealth Bank (CBA) You might normally be concerned about a $8 drop or 10% decline in 3 weeks but this is the nature of the current market we are in. If we look at most of the previous declines or drops, most of them have been quick and a majority of them occur between 3-6 weeks in duration, with 3 weeks being the most common. Technically we can see how relevant the $79 level has been in the past, so I believe that level is likely to act as significant support. A short term volatile swing like this is normally a good opportunity to enter if we look at the past few years trading history.

3 TPG Telecom (TLM) TPM is looking very interesting from a technical perspective. We have this large overlapping low set up or three thrust low as its referred from a technical perspective. This is one of my favourite technical patterns as this normally a very bullish chart set up and big moves typically follow this technical pattern. The company has had a wonderful track record of growth and has made a series of large investments for its future recently to compete with the big boys in this industry. This is a super bullish technical pattern and this could be on the verge of a large rally here. A rally to $7.50 looks very possible. Ainsworth Gaming (AGI) It would appear that the downtrend line has been broken this week with an impulsive move higher. Volume has also increased recently and has been higher at each of the recent lows which is a strong sign of accumulation taking place at the lows. All of our indicators are showing strong bullish divergence and the low appears to be rounding up which are all positive signbs from a longer term perspective. This looks quite bullish and a descent rally should follow on here.

4 Catapult Sports (CAT) This week marks 43 weeks from the $4.29 high and price has used up plenty of time on this pullback to date. From a technical perspective, the 61.8% Fibonacci level is one of the most important retracement levels to monitor for support and I think this decline appears to be slowing down and looks ready for a turn. With a very strong growth profile, this is one stock that could excel in the second half of We might look at small holding for our model portfolio this week and this wearable sports technology company is the market leader in it s industry which is currently experiencing massive growth. Every club, coach and fan wants data on all their favourite teams and this is likely to spill over into other leagues all the way down to a community level. I really like this space and think this company is sure to have a second leg up after its successful listing in late For professional and timely advice on how to maximize your returns on your portfolio please call Gary Glover (02) gary.glover@novuscapital.com.au or Toby Lei (02) toby.lei@novuscapital.com.au Gary Glover (AR ) is an Authorised Representative of Novus Capital Limited (AFSL ). Level 24, 56 Pitt Street, Sydney NSW 2000, Telephone: , Toll Free: , Facsimile: There are no certainties in the share market, only probabilities.

5 General Advice Warning: The advice in this newsletter is of a general nature only and has been prepared without taking into account any of the objectives, financial situation or needs of any person. Before making an investment decision on the basis of any advice in this document, you need to consider, with or without the assistance of a financial adviser, whether the advice is appropriate in light of your particular objectives, financial situation and needs. Disclaimer: Gary Glover (AR ) is an Authorised Representative of Novus Capital Limited (AFSL ). Novus and its directors, authorised representatives, consultants and employees may hold securities (or derivatives of them) in the companies referred to in this publication and may receive commissions, brokerage and other fees from dealing in those securities or their derivatives. Novus believes that any general advice and information herein is accurate and reliable, but no warranties of accuracy, reliability or completeness are given (except insofar as liability under any statute cannot be excluded). No responsibility for any errors or omissions or any negligence is accepted by Novus or any of its directors, authorised representatives, consultants and employees. Novus does not accept any responsibility to inform recipients of this document of any matter that subsequently comes to notice which may affect any of the information contained in this document.