The ASX 200 Australian Index (S&P/ASX 200) Daily Diagram Technical Analysis Training shows the following:
The ASX200 index has made consolidations into the KUMO cloud last week. Now the resistance line has met the SPAN A of KUMO (green line) and both can be strong resistance or a new support if the trend is going to change. The weekly diagram shows neutral...
Australia stands at value on the weekly chart. Everytime Australia draws a divergence and comes back at its value zone, it's time to buy. Look at the weekly here :
The daily has drawn two hammers at a support zone. This is a very simple idea, a trade for a few days.
I have a buy limit order at 5410
If you see the "Aussie map", linked below, gives a more rounded picture of the local market at the time being.
Stocks are currently in confluence area that gives the shorts better probabilities for a possible correction.
Momentum divergence can been seen from miles away and a closing below the up trending arc line will have the sound of a bottle opened,...
Currently in a bearish trend. As more negative data comes out from China we should see that continue. I follow the Australian markets closely (I live in Melbourne)... I feel ASX sentiment is negative. Downwards momentum is also increasing.
There isn't much I can add. All the stock market indexes are down. Of the markets I follow, Italy and Australia have been holding during this world panic the best. Still, the bearish signals are obvious, Australia making a double top with false breakout and divergence!
Situation looking good all around the Globe, ECB is done, NFP tommorow and let's hope that will push stocks higher.
Regarding Australia, which is a correlated market with Europe and US, I see a nice long.
All explanations are on the chart, watch carefully the candlesticks when corrections ended. The bounce today invalidated a H&S, which means bears lost steam.
The australian index formed a doji at a previous resistence. RSI has a slight divergence, but i consider it just a rejection from a resistence. Support at the blue line and at the trendlines. I don't see a trend reverseal, but at least a consolidation is due here before going over the previous high. Stop loss over 5250, tp 5160, 5100, 5050
