The Australian Securities Exchange (ASX) All Ordinaries index could hit 6,600 within the next month, but we may have already seen the yearly high, according to Wealth Within chief analyst, Dale Gillham.
Gillham said once again, the All Ordinaries index lacked any real direction as it continued to trade up one day and down the next.
“This week the bulls have pushed the Australian market slightly higher, but it remains to be seen if this will continue to break the current sideways pattern the market seems to be in,” Gillham said.
“Since 1 June, the Australian stockmarket has risen just 4%, as the market is quite nervous given the US is now releasing second quarter earnings reports.
“If there is any bad news in these reports, we are likely to see the Dow Jones drop and a ripple effect flow on to our market.
The All Ordinaries index stood at 6,144.90, as of close on Friday 17 July, 2020.
“I still believe there is time for our market to rise over the next few weeks to trade to around 6,600 points, which is due to occur in the next two to four weeks,” Gillham said.
“If the bears take hold of the market, then we may have already seen the yearly high and we need to expect further falls.
“For now, until the market picks a direction, it is best to exercise caution if you intend purchasing stocks.”
According to FE Analytics, over the last 12 months to 17 July, 2020, the All Ordinaries index had lost 5.91%.
Performance of the ASX All Ordinaries index over the 12 months to 17 July 2020
