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Good morning Teodor, Following on from last week's outlook, I'm still expecting a bullish week across the Australian market. Australian market sentiment is currently quite bearish following the recent interest rate rise and increase in unemployment. However, when sentiment becomes this negative, the market often does the opposite of what most people expect.
We've now spent most of the past week moving sideways, with signs of accumulation building across several sectors. Here's what I'm watching this week: - XJO (ASX 200):
The first key level is 8,750. A break above that would be encouraging, but 8,810 is the bigger level I'm watching to confirm the accumulation phase. If we clear both, I'm expecting a move towards 8,900 to 9,000.
- GOLD & SILVER: Both remain around important technical levels and are showing early signs of strength. One particularly interesting development on Friday was silver falling while silver miners actually rallied. That's a classic positive divergence and something we often see during bottoming formations.
- CRYPTO:
I've been bullish on crypto for several weeks, and we've now reached some important levels following the recent rally. Bitcoin needs to break above $87,000 for further confirmation, while OTHERS (altcoins excluding the top 10) needs to clear $355 billion. Both are at key resistance levels now, so I'd be a little cautious chasing prices after the recent run.
- INFORMATION TECHNOLOGY: Had a very strong week and remains bullish while holding above 1,665. My next upside target is around 1,800. Copper also held its significant support level of $6.55. As long as it holds, that $6.55 level remains very bullish as well.
- ENERGY: The standout sector this year continues to look bullish. As long as the sector holds above 10,500, the broader bullish structure remains intact.
- CONSUMER STAPLES: One of the best-looking charts right now. We've seen a beautiful low form, with major resistance around 12,800 now turning into support. While that level holds, the sector looks extremely bullish.
THE BIG PICTURE
My view hasn't changed from last week. Across several markets, we're seeing important support levels holding, selling momentum weakening and early signs of accumulation.
The next step is confirmation, particularly on the XJO above 8,750 and then 8,810.
If those levels break, I think we could see a decent relief rally towards 8,900 to 9,000. Of course, nothing is guaranteed, but the technical setup is certainly becoming more interesting.
Let's see what this week brings!
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