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Chart of the week: Spark Infrastructure

Posted By Lance Lai On In Markets,Shares | No Comments

In my very first contribution to the Switzer Super Report, it would have been great to give a ‘Chart of the Week’ that was going to ‘knock your socks off’ with Herculean gains.

Instead, I’ve chosen a ‘Steady as she goes’ stock – Spark Infrastructure – which is a stapled loan note and unit in the Utilities Sector, Electric Utilities Group. It is an infrastructure fund with interests in Electric Infrastructure in Melbourne, Central and West Victoria and South Australia.

SKI – Spark Infrastructure $1.365 Close on Friday 9 March 2012

Why do I like the chart?

  1. Price action is still above yellow line – the 200 day moving average.
  2. Support (marked ‘S’) has held at $1.33.
  3. The stock yields 7.3%.
  4. The 200-day moving average (the yellow line) is still pointing up.
  5. The last point is not shown on the chart, but as the US S&P 500 looks like it is hitting some serious resistance (for more on this, watch my interview with Peter from 1 December 2011 [1]), it looks as if getting defensive is not a bad idea.

What don’t I like?

  1. We have a ‘death cross’ (marked D) where the 10-day moving average is crossing the 50 day moving average from above. This is negative in terms of upwards price action.

It is rare that ‘all the ducks line up’ for a perfect situation in the real word. On balance, this is a ‘steady as she goes’ starter Chart of the Week.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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