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Good morning Teodor, Australian markets continue to look healthy this week, with the broader market working through a normal retracement following its recent strength.
The XJO remains in a healthy zigzag-style pullback, with 8,950 the key support level to watch. While the market remains above this level, the current pullback remains healthy and normal, and the broader bullish structure remains intact.
Gold, silver and precious metals have run into resistance after becoming overbought. A pullback or consolidation over the next week or so would be normal, so this is not an area I would be looking to chase this week.
Iron ore was highlighted last week, with $96 the key level to watch. It broke through that level before surging another 3% to 4% on Friday. Fortescue (FMG) remains one Australian stock to watch following the strength in iron ore.
Oil is another one to watch closely this week. While it remains above $79, the technical picture remains bullish. A break above $88 would be particularly significant and could be the catalyst for oil to really start trending higher.
Nickel remains around major support, with buyers continuing to hold the area. I am watching for signs they can take control and push prices higher.
Uranium also had a strong week but has now reached resistance. A pullback would be healthy, with the URA uranium miners ETF around $40 to $42 an area to watch for buyers returning.
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