Presentation in Adelaide, Market Update

I will be presenting for my first time this year when I present for the Australian Technical Analysts Association again, however this time in Adelaide on Wednesday 15th February.  You can click here for venue and other details.  You are permitted to attend one monthly meeting for free as a guest so if you do attend, please identify yourself as my guest at registration.

ASX200

The index has spent the last couple of weeks easing off a little however significantly it has enjoyed some support from a new key level at 5600, which provided some resistance over the last six months or so.   The recent high was close to a two year high which reflects how well the market has been performing.

Obviously many will expect it to continue to rally higher with the support at 5600, and certainly in light of the Dow Jones reaching an all time high in the last 24 hours, after struggling to break through 20000 for several weeks.

The all time highs / lows reading this week is 4 / 2.  There were 4 stocks in the top 500 that achieved new all time highs this week and the largest of those is again AGL, and the cheapest Aust Finance Group (ASX Code: AFG).   There were 2 stocks that have lowered themselves to all time lows and they are Gateway Lifestyle (ASX Code: GTY) and McGrath (ASX Code: MEA).

Image from MetaStock

AUD/USD

The Australian dollar is finally starting to show some signs of reversing and easing lower.  As I mentioned last week, I was reasonably confident that the key level at 0.75 would hold up again and place enough selling pressure on the AUDUSD and force it lower, however it has moved well to trade at a two month high just above 0.76 a few days ago.

After having provided some support a couple of weeks ago, it will be interesting to see whether the 0.75 level plays a role again in the near future and props up the Australian dollar and keeps it above there.

If it does, it may look to resume its range trading from the second half of last year between 0.75 and 0.77, as the latter level provided stiff resistance for many months last year.

As I type this it is trading around 0.7529.

 

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.