ASX Shares Daily – November 28th

By Chris Becker

Uncertainty from US markets overnight extended into Asia with the ASX200 the best off (Ok, NZX50 was up) only down 0.2% or 9 points recovering from its recent dip – check out below for a full roundup below.

The Nikkei 225 came off by over 1% mainly because of the USD/JPY cross which has been overbought for awhile now:

The falls are extending to the Chinese markets, with the Hang Seng Index and Shanghai Comp both falling 1% currently – the latter continuning to fall below its psychologically important 2000 point barrier.

The Aussie dollar is having a small breather, but one needs to look at the bigger picture – here’s the weekly charts:

The US Dollar has been rolling over after a false breakout, but has hit support just above 80 points – which was resistance before the breakout:

Gold (USD) has stayed above resistance but is going nowhere in the short term, but the long term trend is pretty obvious – but everyone is waiting for a break above $1800:

 

Australian Stocks

Health (CSL) and Telecom (TLS) sectors dragged the index back to a near scratch day. Telstra is still looking way overbought – but the chart below proves that signals are’nt perfect:

 

As for market itself, having bounced off the closely watched 200 day moving average, its gravitating around the April 2011 high at 4440 points. If US markets keep heading up and the US dollar remains weak, we should see a re-visiting of the KC Signal high just below 4600 points:

 

This free daily update should be read alongside Live Trades articles, published every morning at Macro Investor, and placed in context with the longer trends and macro drivers within the overall technical picture,  where Former “Trading Week” readers will find it reborn as “Technicals“, published 8.30am each Monday morning at Macro Investor. Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest.  A free 21-day trial is available at the site. You can follow Chris on Twitter.

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