Just when many long only investors were beginning to feel happier with the Australian market, the upward momentum stalled, reviving unpleasant memories of the global financial crisis. The ASX 200 fell nearly 100 points for the week but Friday found support just above 4300. Disconcerting as this change of direction has been, the uptrend is still definitely intact, unless it breaks the next support level of 4275. It has been a rather disappointing end for the annual results season, when we are heading into the danger months of September and October.
Friday’s trading day candlestick was a “Doji”, hinting at reversal of the impulsive move downwards, so there is reason to be optimistic for next week. Retracements, such as this the past week, are helpful in stimulating renewed buying and continuation, perhaps more gradually and surely, of the upwards trend.
Categories: Trading opinion