ASX 200: Banks run into strong resistance

Iron ore peaked at $60. Expect a sharp fall to test support between $50 and $52, typical of a bear market. Chinese housing price growth — a key driver of iron ore prices as illustrated last week — is slowing and likely to drag ore prices lower.

Iron Ore

The ASX 300 Metals & Mining index is still on the up but likely to respect resistance at 3000, given the reversal in iron ore. Breach of 2750 would confirm a primary down-trend.

ASX 300 Metals & Mining

The ASX 300 Banks index ran into strong resistance at 8500. Declining Twiggs Money Flow highlights selling pressure. Breach of 8000 is likely and would confirm the primary down-trend.

ASX 300 Banks

The ASX 200 displays strong selling pressure, with tall shadows on the last two weekly candles. Twiggs Money Flow dipping below zero for the second time warns of a primary down-trend. Follow-through below 5700 would test primary support at 5600. Breach of 5600 would complete a broad head and shoulders reversal, confirming a primary down-trend.

ASX 200

4 Replies to “ASX 200: Banks run into strong resistance”

  1. Banks and ASX 200 :
    TMF now looks similar to Sept/Oct 2016 , when one should have bought.

    Metals and Minerals :
    I’d buy, on the TMF.

    Iron Ore:
    So much bearishness around – every man and his dog believing it can ONLY fall = so, it becomes a strong buy, therefore. Also, will the Chinese really allow growth rates there to fall this year, given the November Conference”.

    1. “I never argue with the tape” – Jesse Livermore

      • Iron ore in a bear market
      • Metals & Mining same (unless > 3050)
      • Banks same

      ASX 200 teetering under selling pressure but not in bear market ( 5600 < ) at present.

  2. I really enjoy the informative articles particularly the information about Australia where I invest on a relatively small scale..( small investor generally) I note the banks in which I have invested from time to time present a good opportunity to build wealth given the interest rate on deposits for people like me. The cycle appears to recede back to say $22-$25 and then as things improve back to between $30-$34…good money to go in and out with relatively little risk.?
    Thanks again.

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