So We've seen a remarkable recovery in the Australia Equity market. Many are calling the bottom, while some are suggesting that this is a dead cat bounce. I've highlighted in in my 4H chart the possible bear flag formation. Only time will tell.
Due to the Coronavirus outbreak, there has been strong bearish sentiments in the equity market. I believe that we'll see the SP of VAS (Vanguard ASX300 ETF) hit the lower channel, possibly 72 to 74. If the channel is broken, it will be catastrophic. I'll be looking to add to my current position at that price range.
Following the release of results, the market has responded negatively to the news. We've since lost the 200 daily SMA. The SP is sitting at a crucial support/resistance zone (on previous 8 occasion). If this level does not hold, we could see the SP fall further to the 2 levels I've indicated. The latter being a potential gap close.
The recent breakout in SP of #BPT as seen increasing volume on a decreasing SP, strong bearish sign. It has dropped to the lower trend line and also in the range of the 2018/19 peaks. A break of this trend line could see SP fall to the 1.8-1.7 range and 1.3-1.15 range.
#NAB has been making lower highs since its peak in 2015. Since then SP has been fallen each of the last 4 times when approaching the upper trend line. A break of the trend line with strong volume could see a bullish run to 30, 34 and 37.