Gold back in favour as Energy breaks down

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.

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Gold showing strength

The All Ordinaries index was down 0.6% for the week, ending 1 February 2018. Having moved above its 100 DMA last week, it has spent the week consolidating just above. The index closed 2.7% below its 200 DMA. Of the 476 stocks currently comprising the index, only 198 of these (42%) ended the week above their respective 100 DMAs, up from 189 names at the end of last week.  Two hundred fifty-four stocks were up for the week, while 222 ended the week flat or down. One hundred and eighty-seven shares ended the week within 20% of their 52-week highs, while only 43 names are within 5% of highs.

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