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Good morning Teodor, The Australian market had a huge week, with many of the key levels we discussed last week playing out beautifully.
The XJO broke through major resistance at 9,000, triggering the bullish momentum we were looking for. It finished the week up around 3.5%, with five straight green days and a new all-time high.
Small Caps also delivered after holding major support, surging more than 6.5% for the week. Gold and silver continued their strong recovery after I wrote two weeks ago in my News Corp article
that I believed the low was in. That move flowed through to gold and silver miners, which jumped around 25% for the week. The Materials sector was my major focus last week. I said a break above 23,600 could trigger strong upside momentum, and that's exactly what happened, with the sector gaining around 7.5%.
Looking ahead, I'm expecting the broader bullish momentum to continue. Two areas I'm watching closely are nickel, which is sitting around major support and has lagged Materials, and uranium, which has produced a nice fake-out below support and is starting to wake up again.
Also keep a close eye on oil. A break above $79 would put it back into an uptrend and could start having an impact across other areas of the market. While it remains below $79, though, it's still in a downtrend.
With the XJO making new highs, the outlook remains bullish heading into the second half of the year.
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