After not looking so good a couple of weeks ago, the index has rallied well to return to above the key 5400 level to its highest point in almost three months. It will be interesting to see if the 5400 level can prop up the index leading up to year’s end.
This week the highs / lows reading is 4 / 1, which is probably reflective of how well the index is going. There were 4 stocks in the top 500 that achieved new all time highs this week and they are (ASX Code) CKF, NHF, NCK and S32.
There was only 1 new all time low this week – Integral Diagnostics (ASX Code: IDX).
Image from MetaStock
It appears as if the resistance around 0.77 has finally won out as after repeated attempts to move higher, the Australian dollar has failed and fallen away to its lowest levels in around five months. It also seems as if I have been mentioning the resistance level around 0.77 for months suggesting that every time it gets anywhere near there, it is sold off reasonably strongly. It has finally had its say and discouraged Australian dollar bulls.
For sometime the AUD/USD traded mainly between 0.7450 (the lower line drawn below) and 0.7750 and observers would have been watching for which side breaks and where the next big move will be. Now that it has broken down to below 0.7450, it is likely that the 0.7450 level will provide some stiff resistance and prevent previous levels being reached again for a while.
As I type this it is trading around 0.7430