The ASX Telecomms Index (XTJ) Rose 7.3% This Month – Should You Invest?

Just checking the best Australian sectors from the past month for those of you looking at short term investing and it looks as if a few potential winners could be appearing. All those sectors that are higher than the All Ords are shown in green in the table below and to in particular – Health Care and Telecomms are doing exceptionally well at 7.0% and 7.3% respectively.

So let’s look further at the Telecomms index to see which are the best performing shares in this sector for further consideration.

Having a look at the stocks within the ASX 200 which are in the Telecommunication Sector there at first glance seems to be a clear winner with TPM (TPG Telecom Limited) since it has gained a massive 27.4% within the past month.

So obviously the next step is to have a look at its chart to see if it really is in an uptrend. Its chart however doesn’t look quite as positive at the moment. Just looking at the simple line graph you can see that while it was in an uptrend from the 18 March (notice the growing volume around this time as well), it seems to have tapered off around the 1st of April and is now in a bit of a sideways trend.

For this reason it’s not a company that I’d want to buy into right now as it seems the impressive gains are over.

Therefore this doesn’t fit my rules of being in an uptrend and I would continue looking for another company to invest in over the short term.

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  1. Pingback: Investing in the Australian Telecommuncation Sector | uriahheep.org

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