Technicals | Nov 28 2016
By Craig Parker, asset manager, Moat Capital
What a great week on the Australian stock market. If you remember the past couple of weeks I mentioned that the 5400 and 5500 levels were critical technical levels to break and this week we saw them broken. The 5400 being the short term down trend line and the 5500 being the previous high. The only small negative is the 5500 has only just been broken, however it has been broken on both the daily and weekly charts. The S&P/ASX 200 has also consolidated well above the 200-day moving average line. All very good signs for the medium to long term.
In the short term, I get the feeling that our market could reach higher towards the 5600 mark before hitting the next level of resistance. This could also coincide with the US rate rise and some possible headwinds. Not sure how long this pro Trump rally will last. Perhaps Janet Yellen will rain on the party. Technically I would like to see our market go a little higher and then retreat to confirm a higher low. This would provide the springboard needed to head back towards the 6000-level set back in March 2015 over the next 12 months. You will also notice that the financials’ sector ex REITS has had a very clear breakout above the resistance levels which is also a very good technical sign for the overall market.
ASX200 Daily
ASX200 Weekly
ASX Financials ex-REITs
Authorised Representative Sentinel Private Wealth AFSL 344762
Important Information
This document and its contents are general in nature and do not constitute or convey personal advice. It has been prepared without consideration of anyone's particular financial situation, needs or financial objectives. Personal advice should be sought before acting on any of the areas discussed. The authors and distributors of this document accept no liability for any loss or damage suffered by any person as a result of that person, or any other person, placing any reliance on the contents of this document.
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