The ASX 200 is nearly there too

The trifecta of a Weekly Oversold reading, touching its 200 week moving average and trading at 2.5 standard deviations below its rolling weekly mean…….is near.

A 1% decline in the ASX 200 down to the 6,655 level would see these indicators align.

This is not an exercise of calling an exact low….Jeez !

It’s an illustration to suggest that the probability of a trough is close by.

Whilst this comment is about the whole index, as a stockpicker I think the ‘internals’ of the ASX 200 will see a rotation of monies from commodity related stocks into the unloved stocks within the retail, banking and building materials sectors.

June 16, 2022

by Rob Zdravevski

rob@karriasset.com.au

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