The ASX 200 Daily chart
The Australian market shook off its fears of the pending US market “fiscal cliff” crisis with a second strongly positive week of trading (up 93 points) to extend the rally of the previous week (77 points).
The close was 4506, 22 points shy of the most recent resistance level, but 75 point short of the high for the year at 4581 reached on October 18. Interestingly trading on Friday Nov 30 was accompanied by a significant kick up in volume to 2.53 billion, highlighting an increase in buying demand. One would expect that this could carry into next week.
The “fiscal cliff” remains a latent issue likely to erupt in the next month if the US political parties fail to reach compromises on the management of ballooning US debt.
A stand-out performer in the last twelve months has been CSL. With continuation of the off-market buy-back into a second year, and the share-price cracking the $50 barrier, it would seem that its stellar run is set to continue.
Categories: Trading opinion