The previous week saw the ASX All Ordinaries [XAO] close at 6,011 points. The opening three days of the week saw trading move sideways before a drop on Thursday.
Friday was a wild day of trading, with [XAO] eventually finishing up for the day.
The resistance level of 6,018 is proving to be a tough nut to crack.
Source: Optuma
The week ahead for the All Ords
The most recent move up for the All Ords stagnated at 6,134 points — unable to move up past the most recent high of 6,314, this could be indicating weakness and a lack of commitment from buyers to the move up.
There are also plenty of fears about that a resurgence of COVID-19 will grip the nation, with Victoria proving to be a hot spot for the virus at present.
This coming week could be the start of a slide for the All Ords.
Should the price fall below the resistance level of 5,853, then the levels of 5,620 and 5,381 may provide support against a further fall.
Source: Optuma
Which sectors did best and the top movers from last week
Last week most sectors mostly moved sideways with only the health sector showing any gains, moving up 1.43%.
The largest declines were in energy and industrials, both pulling back 4.28%, along with the materials sector falling away 2.05%.
Moving into the stocks, Western Areas Ltd [ASX:WSA] jumped up 22.52% and Saracen Minerals Ltd [ASX:SAR] also posted a gain in the double digits — 10.06%, in fact. Sonic Healthcare Ltd [ASX:SHL] and ResMed Inc [ASX:RMD] also made notable gains of 5.69% and 7.44%, respectively.
On the downside, the big losers last week were Challenger Ltd [ASX:CGF] and Crown Resorts Ltd [ASX:CWN] — falling away 13.53% and 8.29%, respectively, along with Sydney Airport [ASX:SYD] also declining 7%.
A word about volatile markets…
I’ve previously discussed the phenomenon of people withdrawing retirement funds to start day trading.
This is a potentially dangerous trend.
Markets are a complex equation that even the best minds struggle to solve.
The side of this equation that can be controlled is yours. The best investment you can make in any market is that of educating yourself, before testing yourself via an actual investment.
That’s why our publication Money Morning is a fantastic place to pick up investment stories before they hit the mainstream press. It will come to your inbox seven days a week, and I strongly encourage anyone trying to become a better investor to subscribe. It’s free and you won’t regret it.
Regards,
Carl Wittkopp,
For Money Morning
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