article 3 months old

Beyond 5000

Australia | Dec 20 2012

By Jonathan Barratt
 
The move by the RBA to lower interest rates has helped the local bourse to trade higher. We continue to think the RBA will keep this bias and as such we are looking for the test to the topside to continue in Q1. It’s been an interesting year for the local market as it has pretty much just stuck to a range and only now is making its move higher. It really needs to play catch up with the rest of the world.
 
We expect this will be the case Q1 as investors start to view the Chinese demand for commodities as not being satiated. Keep an eye on miners in particularly Fortescue Metals ((FMG)) as we are looking for this sector to have run.  If the Chinese economy swings back into gear, which we think it will, then happy days. 5000 is the first area of resistance and we can see the market having a look at 5300. 
 
 

 
 
Edited by Jonathan Barratt, Barratt's Bulletin is a weekly subscription newsletter that provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here to take a no obligation 21-day trial to Barratt's or to learn more visit www.barrattsbulletin.com. Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).

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