Technicals | Sep 04 2017
By Craig Parker, asset manager, Moat Capital
You’ll notice on the ASX200 daily chart we are stuck in a channel between 5670 and 5800 however if you look at the weekly chart we are nearing a medium-term uptrend line, and if you go by the mantra the trend is your friend then you will be getting ready for a buy signal on a breakout up along this trend line. Perhaps the recent move up is the beginning of the next leg in the medium to long term uptrend. The weekly MACD indicator is also converging and a crossover could spell more upside. The dampener on the above possibility is again the financials’ sector although, it is approaching a longer-term uptrend line (6950 level) and a breakout up around this level would be very good news for the overall market.
Naturally a break down through this uptrend line along with a break through the 5670 level on the S&P/ASX 200 would spell some serious change in momentum. Need to keep an eye on these levels. Technically the Small Ord’s just had a breakout to the upside and is looking good from a technical perspective. Maybe our small caps sector will lead the large cap sector out of the sideways mess.
Overall, news is very mixed and combined with the geo-political risks it seems investors are increasingly hedging their bets with Gold finally breaking through the 1300 barrier and a long term down trend line which is a sign of renewed strength from a technical perspective. If you are a Gold fan then the next level to look out for is 1380. A break through this level could suggest further upward momentum over the medium to long term with the next possible level of resistance at an old support level around 1550.
ASX200 daily
ASX200 weekly
ASX200 financials ex-REITs weekly
ASX Small Ords weekly
Gold weekly
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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