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ASX200 Index Analysis
Time Frame : Daily/Weekly
The ASX200 is seeing a second day of collapse as the coronavirus eats away at the bullish sentiment. With that being said, the action today is different from Monday as buyers dived in for a bargain on the open today to support a bounce off the lows. Gold is also performing strangely today and is not a hedge as some thought with the sector under pressure today and is actually currently the biggest drag on the action. We expect there is a lot of bottom picking and profit taking playing out as the trend is still up but there important factor of the impact to the global economy is far from resolved. The Weekly chart is showing some confluence in an extended market which does not suggest that we will see the market back on its merry way higher and the virus fears get brushed aside. Although the previous few days have wiped a lot of value of the Index (according to local news feeds), it is not much in the scheme of things. We still expect that there is more to come and will be watching the 7000/7050 zone to see how sellers react. If price sees heavy selling again then we expect a much deeper correction. The action still is a while from playing out if it does, but time to take stock. On the flip side, if price grinds higher we are still not seeing a lot of entries setting up to put risk into so a flush lower is healthy to bring some of the ‘extended stocks’ back on the radar.
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Index : ASX200
Current Price : 6870
Status : On watch for price to find further weakness
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Longer term Weekly Analysis
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Shorter Term Daily Analysis
