Technicals | Aug 01 2023
By Michael Gable
Better-than-expected CPI numbers last week saw our market finally break above its recent resistance level.
However, the Australian market seems to have a knack for breaking higher just as the US markets are ready to take a breather. We expect US markets to cool off here, but we are not expecting any sharp pullbacks.
Today's research has a chart of the S&P/ASX 200 Index to show what it might do from here – bearing in mind the RBA interest rate decision today. As markets stall here, we have our eye on a few potential opportunities.
It is a positive sign that the XJO finally broke above the resistance line near 7400.
However, it had run fairly hard during the past few weeks and is in need of a breather here. Trading sideways above 7400 would be ideal and prepare it for the next move.
Otherwise, it is going to dip, we don't want to see it fall below 7300 as that could open up a retest of the low 7000's again.
Longer-term, we maintain that an eventual retest and break of the all-time highs near 7600 is a possibility in 2023.
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Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
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