Market News & Analysis

CBA, ASX, ASX200 powered higher this week

Feb 8, 2019 | Market Update

What a week we’ve seen from the ASX, what started with potential uncertainty due to the banking royal commission turned into a buy up after what mainly I can think is that the commission failed to be damaging enough to banking stocks. The buying has not been confined to the financials it’s been broad across a lot of sectors in the ASX200. 

CBA started the week with a strong gap and followed it up with an attempted fill that was stopped by buyers. Price finished the week with two strong sessions taking out two resistance levels and breaking out of its ascending channel. Price set a new HH today after testing $74.87 hitting multi-week highs. Price still has a resistance hurdle at $75.90, that could offer a harder test as its stood since July 18. Traders could be looking for a potential pull back into the channel on the short term if profit taking takes off. Otherwise, if the rally maintains we would be looking for a new shot at $75. 

ASX added $2.54 this week following positive market sentiment. Price jumping back above $67 level. Earlier in the week we saw price break above its $65.15 resistance point and continue to set new HHs. This afternoon sellers have come in and that’s not surprising on a Friday to see some profit taking to end the week. The next resistance point above is seen at $68.20. We still need another extension to reach that point. Traders at this point we are looking for the next reaction to form an HL continuation set up as currently price is extended.

Finally. the ASX200. Price added 197 pts to this point in the week after it busted through 5925 resistance on Monday and never looked back. Hitting multi-month highs at 6106. Its great for a change to see the ASX200 running its own ship largely ignoring O/S influences. Europe and the US had decent falls overnight but in morning trade the ASX200 held close to a 20 pt gain before general profit-taking weighted on the session.  

One point to watch is the fact today’s session failed to set a new high and is trading in yesterday’s higher shadow. It is starting to show buyers are thinning in that area. (6061 – 6095) this weeks high also lines up with an AUG low which can also be seen as resistance. For a continuation, we want to see the current signs of supply dry up. 

Good trading from EightCap

 

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