This past week saw the All Ords [XAO] close below 6,000 points, ending the week at 5,959 points. Not unexpected, but the reversal would likely be giving some a shock. The opening day of trading saw prices move up before turning to fall for the rest of the week.
Last week’s projected level of 6,253 points proved to be a strong turning point, with the price moving marginally up above this before falling back.
The week ahead for the ASX
After hitting the resistance level of 6,253 and being unable to make it through, the outlook for the week ahead may not look so rosy. The All Ords and the companies that it is comprised of are facing significant challenges. Price levels of 5,862 and 5,618 may be where the market finds support.
A closer look at ASX sectors…
At the end of last week, all sectors were down. Consumer staples and utilities felt the least pain, only falling back 0.35% and 0.55%.
Financials and Industrials were hit much harder, falling 3.77% and 3.07%. The energy sector took a beating, declining 7.01%.
Moving into the stocks, there were very few gains out there this previous week. Newcrest Mining Ltd [ASX:NCM] and Coca-Cola Amatil Ltd [ASX:CCL] saw small upticks of 3.58% and 3.75%. Most stocks closed down, with this being reflected in Cimic Group Ltd [ASX:CIM] and Amcor Plc [ASX:AMC], pulling back 7.72% and 9.10% respectively.
CSR Ltd [ASX:CSR] saw double-digit losses, falling back 11.21%.
The broader Look for the ASX this week
The pandemic roils on, and it appears the threat of a second wave in the US could drag the market down further.
This very strange time in life is causing people to do very strange things, none more so than, attempt to day trade.
With no previous experience trading, no less.
In a recent ABC article about new traders, one of the outlined reasons for starting to trade was FOMO or ‘fear of missing out’, and others were reportedly taking cash from their super to dabble in the market.
While this looks great when the market is pumping, on the pull back the inexperienced can lose the lot. I cannot say this enough — if you want to trade or invest, get educated in the matter the same way as any other high-level skill in life. In the long run that education will be your saviour!
On that note, our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here.
For Money Morning