Technicals | Mar 27 2017
By Craig Parker, asset manager, Moat Capital
Not a lot to report on the technical side of things this week as it was again a relatively flat week apart from the Elephant in the Room (S&P 500) trumpeting softly. Time will tell whether there is a rush for the exit and if calls for Trump's possible impeachment grow louder the market will grow ever more volatile. For now, recent terrorist attacks will embolden his position. Our market on the daily chart is in a clear sideways pattern and did happen to break through the 60-day moving average very briefly. In a strong trend the 60-day moving average can be a support level and I would be watching this average closely in the coming week for either support or resistance.
The weekly chart is a little more bearish with some clear bearish divergence on the RSI with a recent break in a medium-term uptrend line. Still our market would need to drop below 5620 for the weekly chart or 5320 on the monthly chart to have a lower low than the previous indicating a possible change in momentum. Overall there doesn’t seem to be any impetus for either direction and again the levels to look out for in the coming week will be 5800 and 5620 along with the 60-day moving average as previously mentioned. For what it’s worth the S&P 500 still hasn’t hit its 60-day moving average. See what happens overnight.
ASX200 daily
ASX200 weekly
ASX200 monthly
S&P500 daily
Authorised Representative Sentinel Private Wealth AFSL 344762
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