ASX Weekly Market Outlook and the Top Movers Last Week

Last week saw the All Ordinaries [ASX:XAO] take another move up, gaining 132 points for the week.

Although on Friday the move tapered off a little, with a down day to close out the week:

Weekly ASX Outlook - ASX XAO Share Price Chart

Source: Optuma

ASX outlook for the week ahead

The week ahead is looking like it could be another move up.

Based on the move up last week, the All Ords created a new high which took place on a decent trading volume.

A short-term move further up wouldn’t be out of the ordinary after the solid days of trading seen recently.

Should the All Ords keep pushing forward, then it may move up to find resistance around 6,481 points, which has proven to be a solid level in the past.

Weekly ASX Outlook - ASX All Ordinaries

Source: Optuma

A closer look at the ASX

Last week saw some big moves.

Link Administration Holdings Ltd [ASX:LNK] saw a fantastic week with gains of 21.55%.

Bapcor Ltd [ASX:BAP] and Domino’s Pizza Enterprise Ltd [ASX:DMP] put on 8.67% and 7.08% respectively.

While Ansell Ltd [ASX:ANN] managed to make gains of 3.59%.

On the downside, Eclipx Group Ltd [ASX:ECX] fell away 9.48%.

While Ramsay Health Care Ltd [ASX:RHC] and Aurizon Holdings Ltd [ASX:AZJ] fell back 4.77% and 4.18% respectively.

A broader look at the ASX

In terms of the market, this was perhaps the most interesting week in a long time.

The Andrews Government in Victoria announced a lifting of some of the required restrictions the government took to battle COVID-19.

This is a much-welcomed change to the people of Victoria, as someone from Melbourne myself, I think most would agree with me when I say, it’s been a struggle!

This opening will have all sorts of knock-on effects to business on all scales.

Talking to friends over the weekend, some of which are hairdressers, there is an incredible surge on people wanting haircuts, one salon owner told me she was already booked out to Christmas.

There will be some weird and wonderful haircuts coming out of the lockdown that will require professional attention, and this is great news for small business!

With some of the restrictions lifting, the knock-on effect will be money going back into small business and the economy starting to move again.

The next natural target is Christmas. Events, parties, presents for kids — it all requires cash.

I don’t think this year’s will be the most memorable Christmas, but a lot of these items could very well be put on credit or purchased through ‘buy now, pay later’ providers.

In the short term we may very well see the All Ords move back up as people try to get back to normal.

Yet in the long term, the debt and financial issues created by the COVID-19 pandemic are still there and will have a lasting impact.

There is light at the end of the tunnel — but don’t go too crazy just yet!

Regards,

Carl Wittkopp,
For Money Morning

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Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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