OANDA:AU200AUD is expected to trade towards 1ts support, 3.82% Fibo retracement after breaking down from the lower trend line of the upward trend channel.
Overhead support-turned-resistance (LPSY) also created additional layer of difficult for the index to trade higher.
A break above 6,765 wil falsify the analysis.
Australia 200 comes to strong 12-Years Historical Level!
It can be a powerful bounce from it.
We can open SELL after fake breakout and pullback to level.
Potential profit will be in 5...10 times bigger than risk
After a strong sell-off on Monday, ASX200 is now retracing slightly back up. For now, we will class the retracement as a temporary correction, given that the index broke below its medium-term upside support line on Monday and continues to trade below it.
Please see the chart for levels, targets and the alternative scenario.
Don't forget your stop-loss.
Daily Chart Explanation:
- Price is against the Weekly Ascending Trendline.
- Price is on a Micro Ascending Trendline.
- Bearish Divergence on MACD.
- If price breaks the Ascending Channel at 6740, potential to move down towards the Support Zone at 6400 and, then, to the Bottom of the Ascending Trendline at 5620.
Our Weekly View support this idea. Check it...
Sharing my thoughts and observations on AU200. I was originally expecting Wave 5 to hit the max historical price observed in 2017 (close to 6,850), however an external divergence at RSI @H4 and MACD makes me now expect a change in the trend. TP suggested to be set at Wave 1-3's Fibo 23%, confluent with Wave 2-3's Fibo 50%. Awaiting confirmations.
the price is in a weekly zone of supply never before touched and quite strong, which exists the possibility that the price seeks to a certain extent the demand. The possible entry of trade, H1 HCH, wait for the price to cross the guideline, return and an entry candle.
Price is making new highs while momentum peaked on the 25th of February.
This warns that the rally is not sustainable.
A reaction back down to test the channel is likely and a closing below with failure to get back above would be quite bearish.
Yesterday, ASX200 formed a nice doji candle, which, according to textbooks, signals a reversal. The index drifted lower today and closed in the red. All this is lead to a potential correction to the downside, which may continue up until the medium-term upside support line taken from the low of December. But, we will target the area slightly above that...
as we can see on the 1H chart the price moves below the upper of the Daily ascending channel below the major resistance, we'll waiting for the break confirmation of the white minor channel to the down side with a strong push a correction coming up next before the continuation into the red 0.50 Fibonnaci Level