The next few days promise to be interesting for stock traders. The Australia 200 index had been approaching support, drifting down under the weight of a number of issues including the iron ore price. With the situation in Iraq emerging as a real concern and now overlaying previous issues, support looks like being tested.
If there is to be a break of market support, AMP is the sort of stock that will go with it. Its share price has been grinding higher in a low momentum rally since March. This has taken the form of a trend channel with the 40 day moving average running along the support line. A clear break of this support may set up for a deeper correction in AMP shares than we have seen in recent months