Reluctance to Move Higher – Market Update

ASX200

The ASX200 index seems a little confused, as it moves back and forth between 5650 and 5800. The selling pressure / resistance continues at 5800 as the index repeatedly gets pushed back from around this level. Again, with the resistance in place and playing a significant role, the key level of 6000 seems so much further away. Interestingly the recent troughs have all been a little higher than the previous forming a symmetrical triangle since the beginning of June.

The all time highs / lows reading this week is 4 / 3. Some of the all time highs include Iress, BWX and Costa. 2 of the 3 stocks that fell to all time lows this week are Kina Securities and Oneall.

Daily chart of S&P/ASX200 Index | Image from MetaStock

AUD/USD

The Australian dollar has spent its week declining from the ever present key 0.77 level. This is following a strong week last week which saw rally strongly off support around 0.7550 and move to its highest level since mid-March.

As I mentioned last week, the AUDUSD has run into an old nemesis in the key level of 0.77 which has been sitting back waiting for another visit from the Australian dollar. The pin bar to finish last week did a great job of illustrating how much selling pressure / resistance there is at this level.

As I type this, it is currently trading around 0.7585.

Daily chart of AUDUSD | Image from MetaStock

Important Information

This material is made available by Trading Excellence Pty Ltd (ABN 11 096 024 958) (“Trading Excellence”) and Stuart McPhee who is an Authorised Representative (No 276438) of Australian Stock Report Pty Limited (AFSL 301682 – ABN 94 106 863 978)(“ASR”) and Amalgamated Australian Investment Solutions Pty Limited (AFSL 314614 – ABN 61 123 680 106)(“AAIS”).

This blog is prepared and disseminated for information and discussion purposes only. It is neither an offer to buy or sell securities, or any other financial products nor a solicitation of an offer to buy securities or other financial products. To the extent that any of the content of this website constitutes advice, it is general advice as opposed to personal advice.

Opinions, estimates and projections constitute the current judgement of the author as at the date of publication. They do not necessarily reflect the opinions of ASR, AAIS or any of the related entities, and are subject to change without notice. Whilst the information presented herein is believed to be reliable and sourced from public sources believed to be reliable, ASR and AAIS do not make any representation as to its accuracy or completeness. Past performance is not necessarily indicative of future results.

ASR and AAIS have no obligation to update, modify or amend this publication or otherwise notify a recipient if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate.

Employees and/or associates of ASR, AAIS and its related entities may hold one or more of the stocks, securities or investments reviewed in the newsletter or on the website. Any personal holdings by employees and/or associates of ASR and AAIS and their related entities should not be seen as an endorsement or recommendation in anyway.

ASR and AAIS’ Privacy Statement and Financial Services Guide can be obtained upon request.

No part of this document may be reproduced in any form without the prior written consent of Trading Excellence Pty Ltd.

© Trading Excellence Pty Ltd 2017. All Rights Reserved.