Weekly Aussie Market Focus
The week finished on a strong note on Friday Dec 7 with a 38.5 point rise, after making little progress in the first four days of trading. The impulsive move of the past three weeks is stalling just short at 4551.8, of the high for the year at 4580.
The market is at a cross-road almost as likely to move in one direction as in the other.
Perhaps the more likely scenario is for the XJO to reverse at or below the 4580 resistance level, and to trade in a trading range with support at about 4450 until the US budgetary dilemma is resolved.
The less likely outcome would be for the XJO to continue to rise, break 4580 resistance, and test resistance then at 4600.
With the Reserve Bank reducing the interest rate to 3% the cyclical construction sector stocks such as CSR, Boral and Bluescope Steel have strengthened further.
CSL has continued to trade higher, despite the high Australian dollar, breaking through the $50 barrier to close at $54.77.
Categories: Trading opinion