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Good morning Teodor, Welcome to your weekly market outlook with
ASX Trader
which heads up this newsletter along with expert insights from our business columnists and the latest business news. WHAT I'M WATCHING IN THE MARKETS THIS WEEK
The Australian share market (XJO) tried to move above the important 9000 level last week but wasn't able to stay there. As a result, the market has pulled back slightly, which was expected. The main area I'm watching is between 8600 and 8800, as this is where buyers should return and help support prices.
Healthcare should remain bullish this week. The sector has been one of the strongest areas of the market recently and appears to have formed a major long-term bottom two weeks ago after spending around six years in a bear market. In the short term, I'm expecting some weakness around the 26,000 level, which could lead to a healthy pullback. However, the bigger picture remains very positive, and Healthcare could be entering a new uptrend that lasts for many years.
Consumer Staples, which includes companies that sell everyday essentials, also remains strong. Even while the broader market has been weaker, this sector has continued to hold up well.
Energy sector will be my main focus this week. The Energy Index is currently bouncing from an important support level. A support level is an area where buyers have regularly stepped in to buy in the past. This particular level has held since 2018. If buyers continue to defend this area, it could create some interesting opportunities in energy stocks.
Have a great week.
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