Technicals | Nov 06 2017
By Craig Parker, asset manager, Moat Capital
6000 here we come! No missiles and a dovish nomination for Federal Reserve chair saw our market continue its merry way as predicted. Looking at our weekly ASX 200 chart below you can see we are now comfortably back into the longer-term uptrend and recently broken above the previous high which is great news from a technical point of view and suggests further upside over the medium term. Our financial sector is still struggling which is a bit of a negative however it has been offset by decent moves in the materials and energy sectors as can be seen by the charts below. On the plus side the financial sector is nearing an uptrend line which could provide some impetus for some upside although I’d be watching around the resistance level with some anticipation.
Also on the positive side is our dollar which is in a clear short-term downtrend and doesn’t appear to be getting any support around the old resistance level of 77. The energy sector really exploded this week and looks like it now has enough momentum to finally break out of the up-trending channel into a more serious uptrend. Especially considering overnight Light Crude closed clearly above the 55 level. In the short term all eyes on the S&P 500 and the very steep uptrend line on the daily chart accompanied by significant bearish divergence on the RSI. For me the S&P 500 is beginning to look like it needs to take a breather. Perhaps the rate rise in December will provide this.
ASX200 weekly
ASX200 financials ex-REITs daily
ASX200 materials weekly
ASX200 energy weekly
WTI oil daily
S&P500 daily
AUDUSD 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.
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Technical limitations
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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.
