TECHNICALS – FINANCIALS VS RESOURCES

Angela Mangan

QMG Pty Ltd

The financials sector of the Australian market has emerged as a positive sector technical theme. It is a positive momentum indicator for the financials /bank sector outlook that over last two trading days, three of the four major banks have generated new technical buy signals. Given this has occurred in a cluster/rapid succession is a positive technical indicator. More broadly there are also a significant number of non-bank financials that are rated as technical buys, including a number of A-REITS. Combined the heavy concentration of financials buy signals, especially three of the four major banks, is positive for the sector outlook from a technical perspective. By way of contrast, there is no sign of a turnaround / base forming emerging in the major resources sector of the market. It is a lower risk technical strategy to buy on the upswing, after the trend has turned positive, rather than buying on a pullback (and against the trend).


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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