Australia has been largely insulated from the gyrations of the world economy in the last two decades, which have not brought it a single recession and it is now (by some measures) the second richest country after Switzerland. Despite that, equity values are some way short of their 2007 peak:
Prices have been trading in a range for about six months, and are currently at the top end of that range. The ups and downs of the range have been caught well by our methods and point to a reason to sell right now, looking for a return to the bottom of that range again:
As the longer-term picture in the monthly chart at the top shows, the longer-term trend is upward, so any dip toward the bottom end of the range should be a buying opportunity for ‘buy-and-hold’ investors (if there are any…)
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
