xtf_ze_trader

Stock of the week: ASX:XJO aka ASX200

Long
ASX:XJO   S&P/ASX 200 Index
Today`s stock of the week episode will explore index ASX:XJO. I chose not to analyse one single stock cause my last post about XJO , I had informed you that I will keep you posted if anything price-action wise changes. Things have quickly escalated that is why I am going to analyse this index for you. Lets analyze.

The ASX200 has been on the uptrend since the early March 2020. The bulls have been on fire chasing bears all the way from the abyss to the 0.618fib(6128$). But the bears were back in the game since the 0.618fib did not break and they want to play it hard and kick the bulls` butts. Below is the technical analysis and what we can deduce from it.

- Recent retries by the bulls got stopped out by the 5969 resistance line. you can see 3 indecision candles that started a warning sign showing that bulls dint have enough juice.
- The LSMA looks downward which is not a good sign for bulls
- The daily velocity turned negative
- The bulls are still in good shape cause the uptrend line is not broken yet.

Below is what I think would happen if the critical point( confluence uptrend line and 0.5fib) on the chart is broken:
- my first target will be the 50 SMA (around 5600$) where a bounce back can be anticipated
- if first target broken second target is range 5460 to 5500 where ascending triangle broke to the upside and where the 0.382 fib is located.

At the moment, I am not bearish yet but if the uptrend line breaks and bulls dont reclaim it quickly. I may start closing most of my long positions held since late March and wait for clear opportunities before entering the market again.

I will keep you updated if anything changes all along next week.
keep smashing the likes and have profitable trades next week.
XTF

Comments

As with my prognosis the market bounced back on the uptrend line. My bias is still bullish.
Reply
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