AUS200 trade ideas
AU200 Analysis | Bears will be activeAU200 has made the top of 7650 and recently retest it, making double top pattern.
Double Top usually considered as a bearish sign and the said instrument shift its trend from bullish to bearish.
Currently AU200 is likely to be in distribution phase and its base support lie on 7130. If this horizontal level is taken out, bears will be active in it and the market will finds its next support on 6900.
To make the analysis more conclusive, the said instrument has already broken the bullish parallel channel support and testing the horizontal level.
Trade your levels accordinly.
Could be a slippery slide lower on the ASXThe ASX200 is under pressure as price falls into the weekend on stock market meltdown fears. US rate rises and inflation, along with other concerns, are weighing on bullish sentiment and testing the patients of buyers. Is this the calm before the inevitable storm?
To me, the 7175 level is the line in the sand after the recent RTF (Double Top) at 7625, and buyers will need to hold the line if we are to see higher prices. Price has extended into the level so may see a bounce on some bargain hunting in coming sessions although this will largely depend on how the US performs tonight.
US bonds are pointing to four rate rises this year which is more than expected and pressuring markets. There are some saying that the US Fed has made a mess of easing and have left it too late to contain inflation so will be chasing with faster tightening. If this is the case, I do not see traders wanting to add risk to portfolios or Funds willing to support price...so now is the time I am happy to be cautious hence the recent short on the ASX200 CFD.
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AU200 Downside - House of cards.I lately published a SPDR500 short idea as interest rates and inflation are both on the rise in the US.
There is currently a knock on effect in global markets, and this textbook technical short trade exemplifies it.
ASX - Trouble aheadBlue arrow = Double top
Red arrow = negative divergence
Green arrow = bounce from RSI
Things are starting to look dangerous here. We might get a bounce up to the descending RSI, but overall it is looking fragile. Won't short it until it breaks to the downside of the red horizontal channel
ASX200 analysis | 1D Timeframe• If the price of the Australian index can stabilize above 7340, in the coming days we can see the price rise to 7420 m.
• However, because of Omicron, there are still feelings of risk aversion in the market.
Aus 200 LONGAfter a bullish flag and break, the AUS200 has started to retrace to Support
This is an interesting area to BUY as there are a couple of wick rejections at the 7380 area
Using the bullish the momentum price may reject off this level again and then move to the upside to our highs.
Buy @ 7380’s
Stop @ 7365.1
3:1 RR
Easy go
Get ready🔥
There is an interesting formation.
Bullish Flag on AUS200.
No more words!
Follow the chart and look for the breakout carefully.
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ASX 200: the downtrend in the index continuesCurrent trend
The ASX 200 index is showing a downtrend, trading near 7317.0.
The quotes of the main Australian index began to adjust downward after the Governor of the Reserve Bank of Australia (RBA) Philip Lowe announced a rather pessimistic scenario of the dynamics of the national economy. According to the official, there will be no significant progress in stabilizing inflation in the next year or two, and there is no point in talking about raising the interest rate. The only step that the regulator can take is the reduction and subsequent abandonment of the bond buyback program until the end of 2022, if the economic recovery proceeds within the framework of the RBA forecast.
As for corporate news, the day before it became known about the conclusion of an agreement on the acquisition of Western Areas Ltd. by IGO Ltd. for 1.1B Australian dollars in Q1 2022. Thus, IGO Ltd. also will consolidate the nickel mining business in its portfolio.
The growth leaders in the index are Resolute Mining Ltd. (+7.75%), Virgin Money UK PLC (+6.10%), Northern Star Resource Ltd. (+5.59%).
Among the leaders of the decline are Domain Holdings Australia Ltd. (-7.89%), Afterpay Touch Group Ltd. (-7.45%), Mesoblast Ltd. (-6.44%).
Support and resistance
The price is trading in the global descending channel, forming another wave of decline. Technical indicators reversed and issued a sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming new descending bars.
Support levels: 7235.0, 7100.0.
Resistance levels: 7400.0, 7550.0.
