Technicals | Oct 02 2017
By Craig Parker, asset manager, Moat Capital
Again, this week proved to be a fizzer with no real movement either way as we are still trading on the long-term support line. However, Friday being buy day the range peaked up above the downtrend line in a descending triangle pattern and offered perhaps a glimmer of hope. Could this be the signal for a jump back up into the trading range? The Republicans in the US working on their tax reform could be the catalyst. As the S&P 500 continues to head into the clouds and the overbought indicators move into seriously overbought territory it would take someone with a strong stomach to move against the market in the short term. Nothing short of a North Korean ICBM seems to make a dent.
Our volatility index broke through some support suggesting an improvement in confidence in the short term. Looking at some other domestic sectors and our listed property trust sector has moved up from its support in a medium term sideways pattern which is a positive sign. Our small ords also looks like it is attempting a turnaround from its recent counter trend in an overall uptrend. In the short term, it seems there are some pockets of positivity spring up although over the medium term to longer term I would beware the raging bull in the US.
ASX200 daily
ASX200 weekly
ASX200 listed property daily
ASX small ords daily
ASX200 VIX daily
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.
Moat Capital has made every reasonable effort to ensure the information provided is correct, but Moat Capital makes no representation or any warranty as to whether the information is accurate, complete or up to date. To the extent permitted by law, Moat Capital accepts no responsibility for any errors or misstatements, negligent or otherwise. The information provided may be based on assumptions or market conditions and may change without notice.
Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
