The re-election of Barrack Obama to a second four year term dominated the news headlines this past week. The first three trading days in Australia, before the result was evident, were up-days, whilst the two days which followed were down days, reversing the earlier gains.
The candlestick appearance for the week was a Doji, with the closing price at 4462, just 2 points higher than the open at 4460, indicating market indecision. The trading high for the week was 4519, the low 4436, a range of 83 points, with the close however remaining above the 4450 support.
It would seem that buyers remain unwilling to commit to higher prices before resolution in the New Year of the so-called “fiscal cliff, created by the horrendous US debt burden. At the same time medium term holders of stock are unwilling to sell at these levels hoping for higher prices leading into 2013. There are still plenty of buyers looking to pick up stock on any market weakness.
Categories: Trading opinion