iQ ASX Weekly Forecast For Week Ending 15th November 2013
The weekly closed last week on an uptrend. The market has lacked direction for the past fortnight and rallies have been quick and short lived with a lack of volume at the peaks indicating the market is being bid up as sellers remain patient. The short term daily is on a downtrend and weakness is continued to be expected. The upper range target for next week is 5428 and is below last week's peak at 5456. A move above 5428 will see the market overbought in the medium term.
The daily short term downtrend continues to hold with a daily stop for Monday at 5425. Last week the daily had a change to a downtrend on Wednesday however the market held support and a lack of volatility was seen intraday. We expect volume and volatility to increase this week.
The market has traded the predicted 5387 -5444 range for the last fortnight and a break outside these ranges will lead to the next direction for the market. Currency markets are falling from peaks and the SP500 has tested key support at 1755. The short term daily indicates short positions with the medium term in an uptrend with limited upside - indicating neutral. Refer to daily reports for updates.
Bulls held supports and stops and are back on trend. Upside resistance can be seen to 5428 and the November monthly congestion between 5417 and 5444 continues to hold any rallies. The weekly stop at 5387 confirms this level as a key pivot for the market. A break of 5444 will see the market break all medium and long term resistance and will lead to a break out. The daily upside target for Monday is 5463 and a break of this level will see the market extremely overbought. A close above 5387 at the end of the week will maintain the uptrend.