Select the account you'd like to open


Australia 200 - shifting risk

Market action is pointing to a potential shift in sentiment. Copper and oil prices are firming, the VIX (volatility index on the US SPX 500) has tumbled and shares continue to rally. This might mean that the lows hit between Christmas and New Year are a turning point for share markets, and a new bull run is beginning. The chart shows that the technical picture has improved dramatically.

The rally broke the downtrend and lifted the Australia 200 index over the short term support/resistance at 5,590, and the long term level at 5,640. These levels take on added significance. A fall below these points could mean further damage. However while the market holds above these levels, in my view the risks are on the upside, with potential for a move towards the zone between 5,640 and 6,000. Any break through 6,000 would bring into view the ten year high around 6,375.

Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

Sign up for market update emails