 Good morning and welcome to the chart of the week video with me David Madden today's date is Thursday the 28th of November 2019 and the time has just gone 1125 GMT and this week's chart of the week is the ASX 200 the or as we call it on a platform the Australia 200 And the market The cash market close at a record high So I'll give you the indication of how bullish sentiment is in the ASX 200 and Today's video is going to concentrate on whether that this bullish run is going to continue or not I take a look at the wider view and we can see here since mid-August So for the last few months we've seen by large a steady move to the upside granted We have a fairly size of a correction in October But notice how the lows of October failed to take off the lows that were posted in August and the market from there Slowly could have pushed higher and higher That's going on to post record highs and in fact, as I said close at record highs in the cash market Now if you take a look at what's going on on the MACD histogram the MACD indicator We can see here that positive momentum is rising So the the upward moves we're seeing in the underlying mark on the underlying market Are being confirmed by the steady rise in positive momentum. So Market's moving higher and momentum is pushing is increasing too. So the bulls are clearly in control for now Now if you do press on higher from here, we keep it looking at targeting 6,900 and then if you get a more medium term view if you if you continue at a valley for several weeks We could be looking at targeting the big psychological number of three sorry 7,000 So the area to keep out keep an eye out for in the near term now We have heard in the past 24 hours that there's been a Slight increase in tension between the US and China in relation to the Hong Kong bill President Donald Trump is essentially giving support or backing or support to the To the citizens of Hong Kong in relation to the protests Beijing are likely Just to see this as the US interfering in internal affairs So we could see in the near term kind of a souring of the relationship between the US and China Should that be the case we might see a move to the lower way to the downside in global stocks Now if you do manage to have it and I pull back in Australian stocks We could see the market head back down toward this zone here in around 6,800 to 6,700 and 76 this kind of zone here We saw a lot of solidation In that in that zone not too long ago and for region has been important as they live important Importance in the past it makes it more likely it would be so in the future But obviously there are guarantees and even if you do drop below it Support could be found from this blue line here the fifth of the moving average You can see that I acted nicely as support on a few occasions and that comes into play pretty much bang on 6,700 and even if you go below that this line here the one ready moving average Which is previously active support as well I provide support to and that comes to play at six thousand six hundred and fifty nine So these are areas for potential For potential support are we you know if we do have a move to the downside Might see fresh buyers enter the fold in at these areas should you should you move lower? You know obviously as you can clearly see for the last few weeks and months buying on the dip has been a proper strategy with traders It's only really if you have a size to break below that and go say below 6,600 could then we begin to think you know what maybe this wider polish trend Isn't that isn't that strong? I should have been the case We could be looking at retesting this red line here at the 200 day moving average now If you are going to be trading the Australian Australia 200 the Australian index it is worth a while keep in mind what's going on over in the US and and indeed European exit markets to because dark theory tells us that the averages or the Indices must confirm each other and not too long ago. We've seen record highs In the likes of the S&P 500 we've seen more to your highs in some Europe your European exit markets So if all global markets are pushing higher together It makes them more likely that the kind of overall value will last if you see this journey Australian market Pressing all-time highs while other markets are tapering off that bit of diversity to the two could be a signal That either the Australian market is overbought or as perhaps the other markets are under value But I know you can be more confident in the wider bullish trend continuing if you can see all markets moving in the Same direction higher that is That's all for me this week. Thank you for tuning in and please tune in next week. Thank you very much