ASX 200 Index Futures Barreling Toward 6900 After 1-Week Rally

Summary:
• The ASX 200 index posted its best weekly performance since March 2022 after it gained 2.41%, but is still far from its 1-year highs.

The S&P/ASX 200 index futures continue to inch higher in Sydney’s after-hours trading, even after the underlying index closed out the week on a lower note. Shares in the energy, utilities, and telecoms sectors led the losers, sending the index marginally lower.

The Utilities subsector’s setback came as investors were disappointed by the APA Group’s decision to pay a lower-than-expected dividend. However, the ASX 200 index futures are up 0.27%, sending the index to 1-month highs after the index rode high on risk sentiment for most of the week. 

Gains in the ASX 200 index were led by Bioxyne Ltd, which added 30.77% to its share price. Hamelin Gold Ltd gained 30%, while Scidev Ltd and the Australian and New Zealand Banking Group notched 26.19% and 25.43%, respectively. Jervois Global Ltd posted a 22.43% loss to top the losers’ chart, while Cavalier Resources Ltd and Australian Pacific Coal Ltd shed 16/67% and 16.00%, respectively.

GCX Metals Ltd is down 12.28% but is up 21.95% for the past year. Other top stocks mentioned are all in the red territory over 52 weeks. Despite the ASX 200 index closing lower, it has had its best weekly run since March 2022. This run has come on the back of a solid performance of tech stocks on the exchange,

ASX200 Index Outlook

The active daily candle is challenging resistance at the 6793.75 price mark (28 June and 21 July 2021 high). A breakout beyond this level targets 6913 initially (8 March 2022) before the bulls will have clear skies to target the 7152 resistance (15 March and 8 June highs). 7298 (31 May 2022) and 7454 (8 December 2021 and 25 March 2022 highs) make up short-term targets to the north that remain within reach of the bulls.

Conversely, rejection at the 6793 price mark initially targets the 8 July low at 6720 before 6528 enters the mix as an additional southbound target for further price deterioration. 6413 (16 June low) and 6236 (6 November 2020 high) are potential harvest points for the bears, with the latter completing the coverage of the upside gap of 10 November 2020.  

ASX200 Daily Chart