Technicals | Mar 31 2016
Bottom Line 30/03/16
Daily Trend: Down
Weekly Trend: Down
Monthly Trend: Down
Support Levels: $21.86 – 21.54 / $19.95 – $17.63
Resistance Levels: $26.35 / $29.17 / $31.13
Technical Discussion
→ ANZ is not the preferred exposure to the sector.
→ Asia slowing could be problematic, especially if U.S rates rise.
→ Ongoing capital management is expected.
→ Trading profits will be adversely affected during any sustained correction.
→ Recent weakness may be overdone short term, but larger degree patterns suggest lower prices will come.
“…The 5-wave movement down coupled with the bullish divergence does provide a low risk entry if you want some exposure to the Banking Sector. The strategy is to use our SaR indicator as a trigger mechanism which currently sits at $24.02…” Although price took off with a degree of attitude, triggering our long trade we have had to take defensive action and tighten the initial stop. The end result has been a breakeven trade and although this obviously isn’t what we were looking for there’s simply no point holding on and hoping when the smaller degree patterns take a serious turn for the worst. For the moment we’ll give the banks a wide berth although we may be looking for a shorting opportunity following a lacklustre bounce from here.
Re-published with permission of the publisher. www.thechartist.com.au All copyright remains with the publisher. The above views expressed are not by association FNArena's (see our disclaimer).
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