ASX 200 BULLISH FINANCIAL SECTOR SUPPORTIVE
The ASX 200 closed at 6185- higher by 0.32% from the previous close. The index has been gaining momentum continuously over the last 3 trading sessions. Further back, it has closed in the positive, in 5 out of the past 7 trading sessions. While it has closed about flat on Tuesday.
Shares of banks and financials closed higher after early losses on Monday. The financial sector of the ASX 200 gained 0.62% for the day. National Australia Bank’s shares gained 0.77 % after news of the departure of a top executive at its consumer banking division. Also, the Telecom Services, Utilities and the Consumer Discretionary sectors all ended in the positive territory.
The best performers of the day on the ASX 200 were TPG Telecom Ltd. which rose 3.93% to trade at 8.730 at the close. Meanwhile, Metcash Ltd. added 3.65% to end at 2.840 and Pilbara Minerals Ltd was up 3.27% to 0.790 in the late trade. Commonwealth Bank shares were up 0.4% and ANZ was up 0.9%.
The ASX 200 VIX which measures the implied volatility of ASX 200 options, was up 5.10% to 12.785.
The Reserve Bank of Australia September policy meeting minutes is scheduled to be released on Tuesday and will affect the broader market.
On the technical front, the RSI is currently at 48.79% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at 28.30% and suggests that markets may move in the upward direction.
So, overall the market setup seems to be positive. Trades can be initiated with tight Stop Loss and Take Profit targets as quick short-term trades.
Trade Suggestion-Limit Buy at 6184 Take Profit at 6199. Stop Loss at 6176.