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
4 time it test 5350
Inverse XABCD patern
flag both on RSI an H4
If it dont breach 5350 there is a clear bull signal for 200 + pips. if it breach SL 5250
Sellers may have completed this wave of selling. This is a potential compound selling climax, as the 5 June potential did not hold. These compound potential selling climaxes are high-probability trades.
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,...
it's difficult to predict but the safest thing is that might have 2 cases.
first case could maintain the graph and then falls around the 5322 (most secure)
or down the chart and then rises again until 5326.
Or may even continue its trend of rise.
More or less everything will look clearer on Monday of next week.
good luck.
to check that the tendence is...
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.
(This is my first chart and I am a novice trader - so I welcome lots of feedback.)
This is a simple line up of Stochastic RSI indicator with the recent behavior of the AUS200 index. It seems that the oversold margin is a very accurate indicator of lowest drop before a rise.
It is just striking to me, to see how well the indicator shows the trend.
This seems to...
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
