Technical Analysis Suggests Bearish Short Term Outlook Aussie Equities

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By Rudi Filapek-Vandyck

The local S&P/ASX200 share index yesterday fell through its 30-week moving average and unless the remaining trading hour of the week initiates some strong buying (unlikely) the index should be regarded as in breach of its long term support, technical chartists say. This is not seen as a positive sign.

Current support, which is likely to act as a barrier from hereon, is believed to be at or around 4940. The index is currently at 4921.3, up 14.1 points from yesterday’s close.

Others point to 4977 as the major support level. Both levels were swiftly broken during yesterday afternoon’s sell-off.

This implies that the index may well be heading towards 4680 (nearly 5% lower) where technical support is now believed to be.

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