Technicals | Aug 13 2018
By Craig Parker, asset manager, Moat Capital
This week saw the Banks hold up to the Royal Commission! Still the same old fees for no service issue but nothing new here so the markets decided no new revelations is good news. Markets can now get back to normal and ignore the constant bad news stories emanating from the Royal Commission. Now we wait for the findings and the report which will be interesting reading.
From a technical perspective our market is increasingly looking like it wants to have a correction. The daily chart is continuing with its bearish RSI divergence and considering the US market fell overnight we are looking increasingly like a move back towards the recent uptrend line and perhaps the 60-day moving average is on the cards. The positive news for our market in the medium term is the Financial sector which is showing signs of a shift in momentum as suggested in the previous weeks. You can see on the daily chart that the price action is settling above both the 60 day and 200 day moving averages and a clear higher low than the previous has formed. This is looking more and more like a shift in momentum in this sector at least for the short to medium term.
This should hold until the bad news from further property falls and the reduced credit growth due to tightening of lending standards creeps into the sector over the next year or two. On the good news side, the US 10 Year treasury Note seems to dislike the 3 ceiling with twice having reached it recently and twice retreated and then there is our dollar which fell further helping our exporters. Enjoy your week!
ASX200 daily
ASX200 financials ex-REITs daily
US ten-year yield
AUDUSD daily
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.
