ASX 200, Weekly and Daily Charts, Oct 19

By Kenneth Robson on October 19, 2012 • ( 0 )

The past week has seen the XJO move to a higher high, and continue an upwards trend. The high for the week was reached Thursday Oct 18 at 4581.8 not far short of the next resistance level of 4623. Strong quarterly reports from oil and gas producers BHP, Woodside, and Santos plus a rise in commodity prices helped resource stocks to regain lost ground, but today the banks disappointed after NAB warned of more difficult economic conditions ahead.

The RSI has now risen above 70, into overbought territory, so it wouldn’t surprise to see softer stock prices next week with the index pulling back to support at 4450.