Australian Stocks Continue to Pressure the Upside

• ASX 200 testing the highs near $AU8100 yet again. 

• The rally was broad based. 

• The world continues to see central banks as being stimulative.  

The ASX 200 rallied a bit in the early hours of Monday, as the market gained roughly 1/3%. That being said, the market faces a bit of resistance, especially around the $AU8100 level, an area that the market has seen as a bit of a ceiling as of late. This will be the third time the market has attempted to break above it, so it is very likely that the market will see a lot of issues overall, but at this point, it is showing a lot of resilience, and this is something that traders would be wise to recognize. 

Keep in mind that it is important to pay attention to other indices around the world, as the Australian index is likely to follow the overall attitude of the United States, Europe, and Asia.  

Macquarie Group Ltd (MQG) 

Macquarie Group has been bullish again on Monday, as the market has now broken above the $AU213 level, and now looks like traders are willing to put money to work in this stock. The market had recently been in a bit of a consolidation region, and now that the market has broken higher, it makes sense that traders will feel somewhat emboldened to continue buying. 

RIO Tinto (RIO) 

Materials giant RIO Tinto rallied a bit in the early hours on Monday, as traders around the world are focusing on the idea that the central banks are going to loosen monetary policy, and therefore stoking the idea of global growth. RIO is uniquely poised to take advantage of this, and as a result, it is likely that a lot of traders are looking to RIO as a way to play infrastructure moves, and with the gain on Monday, it looks like the stock could be trying to form a massive base. Ultimately, there are a few concerns around the world, but as the market has been sold off so hard, there is also the possibility of a bit of a rebound effect as well. 

REA Group Ltd (REA) 

Advertising giant REA has shown itself to be a bit stronger in the Monday session, reacting a fresh high. The $AU220 level is broken, and therefore it is likely that most traders will be looking at the charts as a sign of extreme strength, and this session will be thought of as a pivotal moment. The 1.91% gain for the session shows a lot of promise, as traders could be banking on a strengthening of the domestic economy, and therefore a jump in the demand for advertising. 

Insurance Australia Group (IAG) 

Insurance Australia has broken to a fresh high again on Monday, breaking above the $AU7.50 level, as the market continues to see a lot of momentum overall. The gain of 1.21% is a strong sign, and it is likely that the market will see this as a very positive sign. The stock had previously been consolidating, and this is a sign that risk appetite has been building, and this is of course a sign that the trend could continue to show itself as being positive.  

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