ASX200: Overstretched

Technicals | Feb 07 2023

By Michael Gable 

Share markets continue to hold at current levels, with the Australian market looking a bit more overbought than the US.

We have recently seen some moves higher in the US dollar and a decline in some commodity prices, so locally we should continue to see a cooling off in the share prices of our large miners. At some point soon they will be a buy again, so that is one sector that we are keeping a close eye on.

Other stocks in our market appear to be breaking higher in the meantime. Many look to be over-extended, but we expect there to be opportunities around the corner once we see some share price consolidation.

This week's report has a chart on the S&P/ASX 200 to show how it is developing here.

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