TRADESETUP

January 11, 2019

A good start to the year but are buyers running out of steam

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Index Review

ASX200 Index

A good start to the New Year as the bulls come back out of the woodwork and look to the highs. The current rally off 5400 lows may be running out of steam as price action is stretched at current levels. With global issues still hanging around, we expect to see a pullback and that’s where things may get interesting. Price yesterday broke up through a key daily resistance zone which will drag in some more buyers. We expect this to be the fuel for the move lower but will be watching to see what price does from then and expect to see buyers step back in to build a major higher low (refer to chart). Price still has a lot of work to do as high probability stock buying opportunities are still rare and a lot of prices are extended. Once some heat comes out of the market, we expect to see some serious buyers will make their move.

Index : ASX200 Index

Current Price : 5795.5

Status : On watch for a pullback as recent buyers may be running out of steam


Previous Alert 30/11/18

ASX200 Index Review

ASX200 Index

We thought that it was a good idea to take a look at the bigger picture weekly view on the ASX200 today considering the selloff into the weekend. A lot of traders have decided to be risk off into the US/China meeting in the next few days, with the ASX200 currently down over 60 points at 5696. Price is well and truly extended down at current levels but that is no reason to go diving in to try and pick up some bargains and it can always get cheaper. We still have the level 5650/5700 pegged for a bounce but a lot still hinges on the trade war and whether an agreement can be hammered out. For new trades, its a great time to make a list of stocks that may be primed for both a rally and a fall to make sure to take advantage of a strong directional move whether up or down. Hopefully the weekend sees some good news for the bulls but better to be safe and on the sidelines with a plan than be in loading long and be wrong.

Index : ASX200 Index

Current Price : 5701

Status : On watch for a reaction higher as buyer start to defend the 5650/5700 zone



Previous Alert 15/11/18

ASX200 Index Review

ASX200 Index

Are we starting to see some love from the bulls today? We are watching the 5650/5700 zone for some interest from buyers and reaction higher. Price is extended on the weekly timeframe and has stretched into the zone on the daily so expecting to now see some bargain hunters to come out to play. The trend is still held down by 5942 so the action still has a lot of work to do to rebuild traders confidence so patience is the key for now.

Index : ASX200 Index

Current Price : 5747

Status : On watch for a reaction higher as buyer start to defend the 5650/5700 zone


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