Technical Update - Uptrend in ASX 200 continues but is soon to meet resistance
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
S&P ASX 200 seems to continue its uptrend taking out resistance at around 6,930 and with a higher close Friday. Next resistance at the 0.764 retracement at 7,079 and the 100 SMA. 200 SMA near by and coming down will provide resistance but the key resistance is at 7,288.
The uptrend is steep illustrated by the steep rising channel. A break of the lower rising trendline would be first warning of a correction or trend exhaustion. There is minor divergence on RSI but if we see a higher value in the ASX 200 RSI is likely to back that up with a higher value i.e. trade out that divergence.
If the Index break below lower rising trend and closes below 6,918 a correction down to around 6,800-6,763 is likely .
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)