The ASX 200 respected the new resistance level at 5650, confirming a primary down-trend. Target for the decline is 5000.
The ASX 300 Banks Index broke long-term support at 7000, warning of another decline. Trend Index peaks below zero indicate selling pressure. Expect retracement to test the new resistance level but respect is likely and would confirm a long-term target of 5000.
I have been cautious on Australian stocks, especially banks, for a while, and hold 40% cash in the Australian Growth portfolio.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.