These guys below looked shocked as well as the recent price for Wool makes headlines. The improving profile for Wool, and many other commodities, can only be good news for Australia and the Australian market and so I thought I’d review the major Australian stock index, the ASX-200, in light of these developments.

Wool price chart: has ticked above $2,000 AUD per 100 kg!

ASX-200 monthly: The Australian stock market has lagged behind those of other countires with the ASX-200 still to recover above pre-GFC Highs. The S&P500, DJIA, Russell-2000 and NASDAQ indices have all moved beyond their pre-GFC Highs and have made bullish triangle breakouts. I am watching with keen interest to see if the ASX-200 can follow suit and make its own bullish triangle breakout. Any break and hold above 6,800 would have me looking for a possible move up to 10,400 in an Ascending Triangle breakout; like those already seen on the S&P500, DJIA, Russell-2000 and NASDAQ indices:

ASX-200 weekly condensed: not text-book perfect but there is still an overall pattern of higher Highs and higher Lows here:

ASX-200 weekly: there are about 500 points between current price and the 6,800 peak. However, note the previous price reaction at the 6,425 level and so that will be the next major level in focus for any continuation move:

ASX-200 daily: price action continues to grind higher:

ASX-200 4hr: there has been a breakout from a recent 4hr chart triangle pattern so watch for any push up to the 6,425 level:

Summary: Improving Commodity prices will help to underpin the Australian market and I’m watching for any follow-through with the ASX-200. The key levels to watch in coming sessions include:

• 6,425: a long-term S/R level.
• 6,800: the nearest whole number level to the pre-GFC High.