Technicals | Apr 23 2018
By Craig Parker, asset manager, Moat Capital
The daily and weekly charts of our ASX 200 Index are both at key resistance levels. The daily chart is hitting against the ceiling of a long-term uptrend line which often provides resistance in the early stages of a change in trend. On the weekly chart it is a recent downtrend line. Additionally, the daily chart is at the 200-day moving average which could provide some resistance. Our market has also had its counter trend up in an overall down trend that has been present for a few months now. The daily and weekly charts contrast with the monthly chart with the price action hanging around the middle of the long term up trending channel and looks like it is poised to resume its uptrend.
I would be watching the resistance levels mentioned earlier on the daily and weekly chart and in particular the 200-day moving average. Any clear resistance against this level would spell some serious issues for the short to medium term. I wouldn’t be getting too worried until we break below the 5680 level. This level is key support on the weekly and monthly charts. The biggest issue placing pressure on our market is the financial sector which has broken down through a key support level and we don’t need any more surprises coming out of the Royal Commission. AMP shareholders are feeling most of the pain now. From an international perspective the US 10 Year Treasury Note is quietly creeping up although, that is an understatement considering the recent breakout jump up to 2.91. It will be interesting to see how the US market reacts to it reaching and going through the 3 level. The upside pressure is mounting, and the brakes are being applied. Enjoy your week.
ASX200 daily
ASX200 weekly
ASX200 monthly
ASX200 financials ex REITs weekly
US ten-year yield daily
Authorised Representative Life Plan FP AFSL 449658
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