ASX 200 retreats

The ASX 200 retraced to test its new support level at 6050. Falling 21-day Twiggs Money Flow indicates medium-term selling pressure. Breach of 6050 would warn of a test of 5900.

ASX 200

The current advance is fueled by rising commodity prices, with the ASX 300 Metals & Mining index advancing strongly.

ASX 300 Metals & Mining

But the ASX 300 Banks index is pulling in the opposite direction, respecting resistance at 6500 while the Trend Index continues to warn of moderate selling pressure. Breach of 8300 is likely and would warn of a test of primary support at 8000/8100.

ASX 300 Banks

Target for the ASX 200 is the 2007 high of 6800 but a lot will depend on the relative strength of banks v. miners.

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