Wednesday, 30 November 2011

ASX 200 weekly chart trend is down

The weekly chart trend is down, and after a period of consolidation since August, the bearish cross of the 4 week and 18 week moving averages raises the potential for a move below the August lows. Look at the market price action and the same moving averages in mid-2008, and ponder the similarities between then and now.

Indulging in some crystal ball gazing, a move below the August lows would target the mid-channel trend line at around 3600. A move below the mid-channel line would target the lowest channel line at around 2500 (off the chart...)

USD/SEK weekly chart trend line break...

... and bounce from hourly chart trend line test.



Canberra and Queanbeyan housing stock on market

The following chart tracks the number of properties listed as For Sale and For Rent in Canberra and Queanbeyan for the period between early September 2010 and November 30 this year. The extraordinary explosion in the number of properties listed For Sale since early August 2011 will exert downwards pressure on prices.

ASX 200 set to open barely changed

After hours trade on the ASX 200 is currently at 4100, barely changed from Tuesday's ASX close of 4102. As I said yesterday, watch that 18 day moving average.