Technicals | Aug 27 2018
By Craig Parker, asset manager, Moat Capital
Predicting short term movements in the share markets is such a gambler's game but now the Liberal Party have a new leader and things are meant to be different this time around we might see some upward momentum next week. And here is a prediction of my own. Assuming the Liberal Party lose the upcoming election, and this is not a given but let’s say they do, I am betting Tony Abbott will be raising his hand for the leadership job in opposition. He may be a mad monk but he is a master of the long game.
Back to the share market and the outlook is looking rosy with the S&P 500 continuing on its merry way upward in [the] longest bull market in US history and the US 10 Year Treasury Note easing back around the 2.80 mark. The only negative is that the Treasury Note has formed support at the 2.80 level and is looking to head back up towards the resistance at 3. I wouldn’t be too worried about this at this stage as markets haven’t worried about this chart for some time. Investors will only get concerned if it hits out above the 3 level with some serious momentum.
On the local front our ASX 200 is nearing the 60-day moving average and as mentioned above the coming week is looking positive with the political situation calming down. Naturally the Financial sector will need to be monitored closely and apparently the Financial sector thought Turnbull had a decent chance of winning the next election considering they sold off viewing a Labor victory as a certainty and being negative for the sector. The coming weeks will be interesting. Enjoy your week.
ASX200 daily
US ten-year yield daily
Authorised Representative Life Plan FP AFSL 449658
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