Technicals | Jul 02 2018
By Craig Parker, asset manager, Moat Capital
Last week of the FY and it was without any surprises. As mentioned last week we have had some consolidation after the strong run up the weeks before. Where to from here over the next week is anyone’s guess. I would be looking for either more consolidation or a slight move back around the old resistance level of 6150 or the 60-day moving average where we are likely to find some support. One area of concern as alluded to in last week's report was the Financial sector and it is nearing a primary down trend line on the weekly. The other issue which you can see on the Financial sector daily chart below is the sector seems to be finding some resistance around the 7000 level. This is only evident on the daily chart so normally you wouldn’t pay a lot of attention to this however, combined with the primary down trend on the weekly chart and the outlook for further upward momentum is a little concerning in the short to medium term.
Another important sector in our market the Materials sector had a breakout on Thursday but remains in a pennant pattern. A breakout up through this pattern and this would be good news for this sector and perhaps help drive our market further upward. A lot will depend on our dollar and the price of Iron Ore both of which aren’t that promising in the short term. Globally the picture isn’t that great with a spike in weekly volatility and trending up, the S&P 500 forming lower peaks with clear resistance and the Dow Jones Transportation Index approaching some vital support lines (3-year primary uptrend and recent support) with a very clear peak lower pointing to a possible shift in momentum.
In summary there is some clear uncertainty brewing from a global perspective and so far, we have been removed from it but for how long remains unknown. Enjoy your week!
ASX200 daily
ASX200 financials ex-REITs daily
ASX200 materials daily
S&P500 weekly
Dow Jones Transport average weekly
.jpg)
S&P500 VIX weekly
Authorised Representative Life Plan FP AFSL 449658
Important Information
This message contains privileged and confidential information intended only for the use of the addressee named above. If you are not the intended recipient of the message you are hereby notified that you must not distribute, copy or take action in reliance of the information contained in this message. If you have received this message in error, please notify Life Plan FP immediately. Any views expressed in this message are those of the individual sender, except where the sender specifically states them to be the view of Life Plan FP.
This email message is intended only for the addressee (s) and contains information, which may be confidential. If you are not the intended recipient please do not read, save, forward, disclose, or copy the contents of this email. If this email has been sent to you in error, please delete this email and any copies or links to this email completely and immediately from your system. The information in this email is not to be taken as taxation, investment or personal advice and is only an indication of the views of the writer and cannot be relied upon by the receiver. Should the information be acted upon the receivers are doing so at their own risk. If the receiver requires this advice to be used and acted upon they will require this to be presented on the letterhead of the writer. Life Plan FP have made every reasonable effort to ensure the information provided is correct, but Life Plan FP makes no representation or any warranty as to whether the information is accurate, complete or up to date. To the extent permitted by law, Life Plan FP 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.
