iQ ASX Weekly forecast for week ending 4th October 2013
The uptrend holds for a 15th week. The market is back at peak levels and Monday will be the end of a very good quarter for the markets. Weekly support levels show congestion between 5300 and 5325. Supports continue to be tested without conviction and volumes are very low. The short term daily stop for Monday is 5291 and the weekly stop is 5286 The important supports for next week are 5265, 5234 and 5221. Upside resistance is limited and a break of last weeks high will see resistance at 5337, 5362 and 5400. AUDUSD has failed at 0.95 and moved onto a weekly downtrend. Similar pattern in SP500 sees peak levels in place and a new weekly downtrend this week. The market has retested the peak from a fortnight ago and waits for volume to confirm the next direction. We continue to favour weakness after a 3 month long rally.