ASX200 index technicals – 5036 is the key level to watch

Angela Mangan

QMG Pty Ltd

Today is a significant day technically for the ASX200 index – a close above 5036 would generate a technical buy signal indicating the potential for the next upward move. Over the last month there have been a number of major positive technical developments. Buy signals were generated in a cluster by key resource / energy stocks in early February(VIEW LINK), and over the last week a heavy concentration of stock buy signals has been generated in the financials sector. Overall the ratio of stock buy to sell signals generated has been heavily weighted on the buy side which is a positive momentum indicator and will precede any change in the index technicals. The Dow Jones, Nikkei and Hang Seng, Brent crude and copper price have also generated buy signals (nickel, iron ore and aluminium had generated buy signals earlier). All of this adds weight to the view that the Australian market has the potential to stage a further rally.


Angela Mangan
Technical Analyst
QMG Pty Ltd

Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.

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