Technicals | Aug 06 2018
By Craig Parker, asset manager, Moat Capital
Look out 60 day moving average here we come! Next week with the Royal Commission focusing on Superannuation should see our market edge closer to the 60-day moving average. This should provide a buying opportunity as it will also be around the secondary uptrend line. Personally, I would like to see our market inch its way down around the 6150 level which would provide an even better buying point around the old resistance level as can be seen on the weekly chart. The weekly bearish RSI divergence is also suggesting a short term move lower.
Talking of buying opportunity the Shanghai Composite is nearing a 15-year uptrend line. Trump and his tariff wars seem to be to the detriment of China. Only time will tell how long this will last before China retaliates with more serious measures.
On another sour note for our market, the Financial sector which behaved predictably last week went down from around the secondary down trend line. Technically we should see some further downward movement in the short term and it will be interesting to see whether the recent movement up in the past couple of months was a sign of change in overall momentum for the Financial sector. If this move down creates a higher low in the coming weeks’ then I will be more optimistic. Enjoy your week and be prepared for some more bank bashing providing opportunity in the future.
ASX200 daily
ASX200 weekly
ASX200 financials ex-REITs weekly
Shanghai Composite weekly
Authorised Representative Life Plan FP AFSL 449658
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