Financials sector technicals - potential for a positive turnaround
QMG Pty Ltd
The Financials sector emerged as a clear negative theme between mid - late April due to a heavy concentration of sell signals being generated by the key sector stocks - most notably the major banks. These sell signals commenced prior to the ASX200 index sell signal being generated in late April at 5833. It will be interesting to see now if the financials sector is the first to experience a positive trend change, and in turn provides the first lead technical indicator of broad market turnaround. It is significant to note that the potential now exists for a cluster of key financial stocks to generate technical buy signals. These obviously need to translate from potential to actual buy signals, and this still requires a further share price rally to break through key technical barriers (to generate the buy signals).
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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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