ASX is on a 3 day bullish run gaining 191.2 points (2.96%). Today's session pointed in the same direction — after closing at 6,986.7 today, ASX maintained a strong bullish bias that helped the stock close higher at 6,986.7. However, market bears ensured the ASX topped out at 7,011.7 and that by the end of the session, the market had marked out a distinct 6,977 to 7,011.7 range.
Meanwhile, Australia Interest Rate came out at 2.85, while a consensus of analysts was expecting 2.85. Australia Building Approvals (MoM) (Sep) released today at 00:30 UTC with a figure of -5.8, while the previous figure was 23.1. Fresh Home Loans (MoM) data from Australia came out at -9.3.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. ASX's upper Bollinger Band® is at 6,966.43, this is a slight indication of a slowdown. ASX could be slowing down soon as it approaches resistance at 7,016.47. Of course, crossing it might suggest further gains are ahead.
Technical analysis suggests there could be an imminent reversal for ASX.
Other markets are also showing gains as Hang Seng went up by 2.41% today, and closed at 15,827. FTSE is trading around 7,186 after ending today's session at 7,094.53 (up 1.29% today).
The market is looking forward to the release of new data: Australia Trade Balance (Sep) is scheduled for tomorrow at 00:30 UTC. Australia RBA Governor Lowe speech is scheduled today at 08:20 UTC.
The index has been trending positively for about 29 days. ASX hit a significant low of 6,434.7 around 4 months ago, but has since recovered 8.43%.