ASX 200 Continues to Eye 8400  

• Australia will follow New York most times.  

• Mixed bag as far as Aussie companies are concerned.  

• ASX 200 continues to see the same ceiling.  

During the early hours of Wednesday, the Australian index fell from the AU$8400 region, an area that has been a bit of a barrier as of late. The market had actually pierced this region on Tuesday, but Wednesday was more of a “give back” for the index, as we continue to see a lot of stubborn resistance. That being said, Australia will almost certainly take its cues from America, so the New York Stock Exchange should be watch very closely.  

At this point, volume is starting to pick up a bit and what could be perceived as a potential attempt to break out. Recently, the market had been bouncing around between the AU$8100 level and the AU$8400 level, and at this point in time it looks very likely that the market is still in the midst of trying to build up is potential momentum, if technical analysis is to be believed. Indices around the world are doing fairly well as of late, and a certain amount of “knock on effect” may show up here.  

CSL Ltd (CSL)  

CSL rallied 1.08% during the trading session on Wednesday, as the healthcare giant continues to recover some of the losses over the last month. It’s worth noting that CSL has defended the AU$270 level, an area that has been important multiple times. Perhaps traders are starting to look at the possibility of a little bit of value, and it’s probably worth noting that volume has picked up over the last couple of days. A dividend of AU$2.175 certainly does help as well, as CSL is quite often thought of as a “blue-chip holding” for a lot of portfolios.  

REA Group Ltd (REA)  

REA Group had a tough session on Wednesday, dropping 1.42% to lose AU$3.54. That being said, the market has been very strong for a while, as it recently touched the AU$250 level, and has been in a very strong uptrend for several weeks. The volume is starting to drop off a little bit, so it’s possible that the communication services company is a little “in front of its skis”, meaning that it got a little ahead of itself. Nonetheless, there is literally nothing on this chart that looks even remotely bearish, and REA could continue to be a favorite holding of Australian equities traders.  

Pro Medicus Ltd (PME)  

The Wednesday session was good for Pro Medicus, as the market gained just under 1%, adding just a bit more than AU$2 to the stock price. Ultimately, this is a market that’s been in a strong uptrend for some time, and now that it looks as if the AU$215 level is going to be challenged, the healthcare giant has crossed the AU$19.51 billion market, making it a major player. Short-term pullbacks are certainly possible after this type of run, but there should be a significant number of options traded near the AU$200 level underneath that could offer a bit of a short-term floor. Nonetheless, the market is very strong in continues to look so, but it’s probably worth noting that the volume in this particular market is not as strong as others.  

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