Technicals - Resources (negative) vs financials (positive)

Angela Mangan

The ASX200 index originally generated a technical buy signal at 5081 on 3/3/16 (VIEW LINK) with the nominated upside target located at 5380 (it reached a peak of 5357 this week). The expected catalyst from a technical perspective for the ASX200 index to reach the nominated upside target is the financials sector, given key stocks within this space remain technically positive. By contrast, the major technical development and change this week has been the generation of major resource stock technical sell signals, which have been activated in a cluster, and is a negative indicator. Bottom line is the financials outlook is technically positive , resources outlook is technically negative.


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