Australia’s ASX All-Ordinaries Index fell 1.7% this week and is Under Pressure. The market logged two distribution days this week and stands at six over the trailing five weeks. The market is now below its 50-DMA and testing March lows near 5,700.
Author: Sambit Mohanty
Global Focus Emerging Long
Mainland Chinese markets were moved into a Rally Attempt, finding support from last week’s lows. Markets ended higher for the week, the first time in the last six. Both the Shenzhen and Shanghai have moved 1% away from resistance at the 21-DMA. We are still waiting for a follow-through day to warrant a change to Confirmed Uptrend.
Global Focus Frontier Long
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index gained 0.1% this week but closed near lows of the weekly range. It managed to avoid distribution days, but still has four over the trailing five weeks. The index closed right at its 50-DMA, a level which should be carefully monitored next week.
Global Focus Emerging Long
Mainland Chinese markets continue to display signs of concern. The Shenzhen and Shanghai fell for a fifth consecutive week. Both are now testing new lows for the year. The market is in a clear Downtrend and if the Shenzhen falls below January support (1,800), we view support to be at least 4-5% lower or near 1,740.
Global Focus Frontier Long
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index lost 1.4% this week, pulling back from a 52-week closing high the prior week. It traded lower along with the Australian dollar, which lost more than 1% versus the U.S dollar. The index picked up two distribution days and has six in the past five weeks. The distribution level and key support at the 50-DMA, which the index closed just above this week, should be monitored closely.
Global Focus Emerging Long
Mainland Chinese markets continue to be the weakest in APAC, falling for a fourth consecutive week. Both the Shanghai and Shenzhen are trading below key support levels, which will serve as resistance levels. The Shenzhen is the worst of the two, trading 5% below its 40-WMA. The market has a near-worst A/D Rating at D+. Near-term support could be 5% lower from current levels or near January lows or 1,700. Support for the Shanghai could be at 3,000 or 4% lower.
Global Focus Frontier Long
Global Focus Developed Long
Australia’s ASX All-Ordinaries Index gained 1.1% this week, finishing at its highest weekly close since 2008. After bouncing off 10-WMA support, it gained in all four trading days this week. It still has four distribution days over the past five weeks, the only negative.
