The All Ordinaries index appeared to hold the breakout of the previous week with a relatively minor pullback during the week of 0.82% and a close above the new level of support. The tail at the level of support on Friday indicates there was demand at this level, however as we see today, this demand has all but disappeared, and the index looks set for a correction, which could take it back into the lows of the previous trading range.
The All Ordinaries Index recovered during the week ending 17 May 2019, and was up 1.05%, ending 5.6% above its 200 DMA and once again in a position to test resistance at 6,460.
The All Ordinaries index spent another week in the red, ending the week down 0.53%. The index ended the week 4.5% above its 200 DMA but continued to back away from the new highs established three weeks ago.
The index retreated below support at 6,425; however, this retreat was moderate and showed a long tail indicating that buying support remains at this level.
The All Ordinaries index was down 0.71% for the week ending 3 May 2019. The index ended the week 5.0% above its 200 DMA but backed away from the new highs established during the previous week.
The index managed to hold above its new support level of 6425; however, it is critical for it to continue to do so. If the index is unable to maintain support, this portends a retracement to test prior support levels at 6200.
The All Ordinaries index was up 0.14% for the week ending 5 April 2019. The index ended the week 2.6% above its 200 DMA, after a roller coaster of a week that saw it close above the critical 6,350 level before backing away sharply over the next two days to finish the week mostly flat.
For the last six weeks, the index has tracked sideways in a narrow range. Our expectation is for more of the same until there is a clear break in one direction or the other. While that might sound tautological, it is not. A clear break will signal an end to the current trading range and indicate the likely direction of the next move.