ASX 200: Banks break support

The ASX 300 Banks index broke primary support at 8100, signaling a fresh decline. Follow-through below 8000 would strengthen the signal. Another Trend Index trough at zero warns of long-term selling pressure. The next major support level is the 2016 low at 7200 but expect retracement to first test new resistance at 8100.

ASX 300 Banks

Miners rallied, softening the blow.

ASX 300 Metals & Mining

But decline in its biggest sector would weigh heavily on the ASX 200. Retracement is likely to test 6000 but respect would warn of a test of primary support at 5650. Bearish divergence on Twiggs Trend Index warns of long-term selling pressure.

ASX 200

2 thoughts on “ASX 200: Banks break support

  1. Tony says:

    Labours Royal Commission hasn’t helped confidence in bank stocks plus the cost of the defence by the banks at about 100 million . Throw in CBA s opps moment with the cash deposits and the hefty fines that could bring makes a weak sector weaker

  2. […] banks are breaking primary support levels. There are two major reasons for this. One is the precarious level of household debt as a result of […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s