1 year ago

Index avoids the failure point.

From the last post the Index had closed below the 5000 point level.
In the past week a significant recovery has been made, however there is more to do.
The main driver of the recovery has been the resource sector, this has been the first resource driven rally for many years.

The resistance of 5300 is still in play, for a closing level over the resistance point there would need to be a continued rally in Financials and Resources.
The current intra week movement back to 5170 must hold. Failure would put the lower level of 5000 back in play.
With the rising RSI, now over the equilibrium point of 50,  I would favor another run for the 5300 level plus.

xjo Daily