Trend Analysis
The main view of this trade idea is on the Daily Chart.
After declining approximately 12% over the last two week, the Australia 200 index began a symmetrical triangle setup pattern. The resistance trend line was calculated with the lower highs of 7660 and 7345 while the support trend line was calculated with the higher lows of 6750 and 6915. It appears that the Index has broken out of this setup and it is expected that it will rally towards the 8000 price level. A negation of this view will be observed if the Australia 200 Index falls below 7150.
Technical Indicators
The technical indicators support the view of a breakout in the Index. There has been a positive crossover on the 50-Simple Moving Average. The Supertrend is also in a buy zone after the Australia 200 Index closed above 7072 on March 9th. The Awesome Oscillator is above 0 and green while the RSI is off the oversold levels. Indeed the RSI was a bit range bound over the last couple of weeks and quite recently broke above that range, signaling a move higher for the Index.
The intra-day trend following indicators of the Australia 200 Index also display uptrends in the 15-Min, 2-Hour and 4-Hour Time frames.
Recommendation
The recommendation will be to go long at market, with a stop loss at 7150 and a target of 8000. This produces a risk/reward ratio of 2.87.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to the Australia 200 Index.
The main view of this trade idea is on the Daily Chart.
After declining approximately 12% over the last two week, the Australia 200 index began a symmetrical triangle setup pattern. The resistance trend line was calculated with the lower highs of 7660 and 7345 while the support trend line was calculated with the higher lows of 6750 and 6915. It appears that the Index has broken out of this setup and it is expected that it will rally towards the 8000 price level. A negation of this view will be observed if the Australia 200 Index falls below 7150.
Technical Indicators
The technical indicators support the view of a breakout in the Index. There has been a positive crossover on the 50-Simple Moving Average. The Supertrend is also in a buy zone after the Australia 200 Index closed above 7072 on March 9th. The Awesome Oscillator is above 0 and green while the RSI is off the oversold levels. Indeed the RSI was a bit range bound over the last couple of weeks and quite recently broke above that range, signaling a move higher for the Index.
Recommendation
The recommendation will be to go long at market, with a stop loss at 7150 and a target of 8000. This produces a risk/reward ratio of 2.87.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to the Australia 200 Index.