A quick look at today: after ending yesterday at 6,858, ASX went up to 6,895 only to drop back, yet still traded well overall and closed at 6,892.5 today.
Meanwhile, Australia Retail Sales matched projections, with new data release of 0.6%. Australia Trade Balance (Sep) came out at 12.44 billion, while a consensus of analysts was expecting 8.85 billion.
Bollinger Band® analysis indicates that current price action is approaching the upper band at 6,984, thereby suggesting that ASX 200 is becoming overvalued. ASX could be slowing down soon; it is getting close to the resistance line and is now at 6,933, only 40.5 points away. Crossing the resistance line could, however, suggest that further gains are ahead. Despite this, price action overcame a known Fibonacci resistance level at 6,872.47 by around 20.03 points with prices hammering out a 6,829.6 – 6,895 session range.
Examining the technical analysis landscape, ASX is likely to reverse course and start pointing downward in the short term.
ASX shows positive signs, other assets are also on par: Hang Seng added 5.36% and closed around 15,339 today. CAC surges 2.51% today and closed at 6,243.28. FTSE is trading around 7,294.24 after ending today's session at 7,188.63 (up 1.47% today).
Elsewhere, Australia CFTC AUD speculative net positions will be released today at 19:30 UTC.
The index has been trending positively for about a month. ASX hit a significant low of 6,434.7 around 4 months ago, but has since recovered 6.58%.