Been looking at the ASX200 index which is currently sitting on 5100 and wondering if it is due for a correction. There does appear to be some indicators that are pointing to a downward movement for the asx200 in the near future
First, my Gordon growth model formula. Using the figures from the 1st of August, and the current RBA growth measure of 2.25%, I have the ASX200 at 4880.
Secondly, the P/E ratio. According to the RBA, this is at 17.2 for July. Based of the 2.5 year historical average of P/E of 15, again it looks over bought.
Lastly, looking at the technical indicators. These aren't two bad, but the price is above the 20 day and 60 day averages, the ROC has just jumped below 100, RSI is heading down, price is at the middle of the bollinger bands and the oscillators are around 50 and heading down.
Wouldn't take much for a movement down in my opinion.
Disclaimer : Not a recommendation, just an observation. In you want to invest, please see a Financial Advisor
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment