Technicals | Nov 21 2016
By Craig Parker, asset manager, Moat Capital
In the past week, our market has been flat with no real technical triggers being hit. It looked like our market might jump up around the 5500-mark based on the previous week’s movements but it then decided to settle down a bit to absorb what a Trump presidency will mean. The effects on the market will no doubt be more felt once he takes office in January.
On a positive note our market had a short-term breakout up on Friday and I will be watching how we react around the medium-term downtrend line at the 5400 mark and the previous high of 5500. There is some bearish divergence on the S&P 500 so a lot will depend on how the US market plays out over the coming week.
A sector to watch now, which is a significant portion of the S&P/ASX 200 is the Financials ex A-REIT’s. Currently this sector is at a very strong resistance level on the daily chart. If it can break through this level it could provide upward momentum in the near to medium term for the S&P/ASX 200. If you are using a weekly chart the sector has just poked its head above the short-term resistance level. A positive sign.
Authorised Representative Sentinel Private Wealth AFSL 344762
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