Fundamentals are only getting better and with talk of another rate cut in Australia than this will be looking like a good place to buy so i don't think this short term sell of will continue much longer.
But a few observations;
SYD has started to follow the XJO more now where before it did it's own thing and rose into the improving monthly passenger results. Now it looks like it gets sold off with the XJO so that can explain a bit of the recent sell off.
Also, technically it has broken some key levels so we could see some more bearishness. I was tempted to buy some calls today but decided to hold off in case it came back to the 200 day MA (around $6.85) Don't think it will but a move to at least a test $7.00 which will also correspond to an long term uptrend line is possible.
SYD has no technical support where it finished today, actually closing below the 100 day MA which it has not done for months. This is why I think it could come back to the 200 day MA.
In my opinion, it will be too good to ignore around the $7.00 level and could push back higher from that level almost as fast as it came down.
SYD Price at posting:
$7.12 Sentiment: Hold Disclosure: Not Held
