Market News & Analysis
CBA, ASX, ASX200 powered higher this week
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
* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.
In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.
Level 6, 360 Collins Street
Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.
EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.
The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.