article 3 months old

ASX200: Holding Support

Technicals | Sep 25 2017

By Craig Parker, asset manager, Moat Capital

All eyes were on Rocket Man and Twitter man this past week and our market looked like it was heading over the edge with a break in the 5660-support level on Thursday. But buy-day on Friday kept us out for now and the 5660 level is holding up. We are also right around the weekly uptrend support line which will need to be watched closely as mentioned in past weeks analysis. On a positive short term note the financial sector rebounded off its weekly medium-term uptrend line support in the past week. Time will tell whether it is just a counter trend move in a medium term down trend or it is a possible shift in momentum. A shift in momentum would require at least a higher high than the previous and therefore a move above 7400.

With the weekly RSI bearish divergence on the AUS/US dollar we might finally be seeing some positive signs with the weakening of our dollar at least in the short term. Unfortunately, the recent optimism in the price of Iron Ore has come to an end and the materials sector has hit an old resistance level and doesn’t look great. Let’s hope our financial sector is going to pick up because if these two markets languish our overall market is in trouble. This along with the Fed looking to increase the rate in December could continue to keep a lid on the upside. Naturally if Rocket Man and Twitter man ramp things up then all bets are off.

ASX200 daily

ASX200 weekly

ASX200 financials ex-REITs weekly

ASX200 materials weekly

AUDUSD weekly

Authorised Representative Sentinel Private Wealth AFSL 344762

www.moatcapital.com.au

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.

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