Technical Update - ASX200 INDEX - technical buy signal target located@ 5550 reached

Angela Mangan

The ASX200 index generated an upward reversal on 15/7/16, resulting in an upside break above the May 2016 peak, and a decisive break above key resistance that originated in April 2015. These technical developments indicated the potential for a further rally to occur and the ASX200 index generated a technical buy signal at 5429 on 15/7/16. The rally today has resulted in the nominated minimum upside technical target located at 5550 being reached - which was the minimum expectation for a rally. The index technicals remain positive given there is no sign of a technical top formation emerging. At the time the ASX200 index generated the technical buy signal two weeks ago, the financials sector was nominated as the expected key driver of the further market rally given the concentration of stock buy signals generated in this space over the preceding weeks, a rally which has occurred.(VIEW LINK)


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