Technicals | Jan 22 2018
By Craig Parker, asset manager, Moat Capital
Well what a month it has been. Gold and Oil having a good run along with Iron Ore which helped our market hit some highs. The big mover was the US 10 Year Treasury note which has just broken up through a resistance barrier around 2.58-2.60 which could have wide reaching implications. Our lenders are starting to raise rates on their fixed products so look out for a bit of a dampener on the consumer spending front. As far as our market goes we are having that little technical breather we need to help launch the next move upwards.
You can see on the weekly chart the S&P/ASX 200 is settling in the middle of the upward trending channel and the daily chart is about to meet the 60-day moving average. If we can settle in around the 5900 to 6000 level as seen on the daily chart this would provide enough pullback to provide possibly a good buying opportunity for the next move up within the weekly channel. Looking at the weekly chart on our Banks sector and you can see we are nearing a 10-year uptrend line which I will be keeping a very close eye on as it could provide a buying opportunity however, if it breaks down through this line it could mean some serious issues for the banking sector.
Combine this with the US 10 Year treasury note breakout which has hit our Property trust sector of late and a S&P 500 at historical high valuations with the RSI indicator at its highest level in over 100 years and you have some interesting times ahead for the next 12 months.
ASX200 daily
ASX200 weekly
ASX300 banks weekly
ASX200 REITs weekly
US ten-year yield weekly
Authorised Representative Sentinel Private Wealth AFSL 344762
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