ASX200 lackluster, struggles at tough resistance despite spike in precious metal miners
|- ASX200 under pressure, meeting strong resistance level.
- Precious metals miners doing well, commercial property weighing.
Following a mixed US session on Wall Street, (Wall Street Close: A mixed session as markets start to return scanning for COVID-19 risks), Australian shares have not got off to a good start on the return from Easter holidays and the ASX200 is down -0.33% at the time of writing (off its lows) having dropped in the open from a high of 5,469 to a low of 5,372 points.
Gold miners are the better of the index with a spike in gold prices in the US session to fresh seven-year highs. Concerns and the uncertainty pertaining to COVID-19 around economic growth and high levels of debt continue to support the yellow metal. Prices rose above USD1,700/oz to their highest level since 2012 – more on that here.
Shares in Northern Star Resources are up over 10% at the time of writing, St Barbara shares are trading 8.77% higher and Saracen Mineral Holdings are up by 6.65% but off their highs where prices were over 9% higher earlier on. Meanwhile, commercial property is a drag with Scentre Group -3.61% and Vicinity Centres -4.26%, both up from their lows of the day, however.
ASX200 meets a 38.2% Fibonacci retracement
The ASX200 has been grinding higher since the last week of March, correcting the end of February's drop from in the 7,190s. The price recently recovered from bearish divergence in the 4HR MACD drop on the 6th April from the 38.2% Fibo but bulls stepped in again, intent to test the weekly Dec 2018 lows as a key area of resistance. The index, however, struggles at this level again. To the downside, bulls will look for the 5090s support structure to hold. A break of the said resistance, however, opens risk to 5645 as the next resistance structure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.