A quick look at yesterday: ASX closed yesterday at 7,259.5 (with a daily low of 7,239.4) after ending Thursday at 7,241.8 and gaining 0.24%.
Chart analysis indicates ASX 200 is 0.833 points away from testing key resistance at 7,260.33. Peaking above this level could inspire market bulls and open the path to further gains. Concerning technical analysis and more specifically, trend indicators, investors are seeking long positions as ASX price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Momentum evaluation shows that the Relative Strength Index indicates ASX is in an overbought condition. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,324.17, thereby suggesting that ASX is becoming overvalued.
Overall, while ASX has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Other markets are also showing gains as FTSE goes up 0.27% yesterday and closed at 7,466.6. Dow Jones climbs 0.45% yesterday and closed at 34,200.
At the same time, Hang Seng is down to 17,574, losing 87.32 points, after ending the previous session around 17,661.
The index has been trending positively for about a month. ASX hit a significant low of 6,434.7 around 5 months ago, but has since recovered 12.54%.