The ASX200 has seen some relief in the last few days but the selling may not be over

ASX200 Index Review

 

ASX200 Index

The ASX200 is still under pressure and the rout is not be fully over yet. The action is down on support around 5600/5650 but the weekly and daily trend is definitely still down so caution is the key now. The anchor for the trend is around 5950 so price will need to do a bit of work before buyers are convinced of whether bulls are back in control or not. Two scenarios are marked up on the chart showing what we would expect to see from the bears for a potential push below 5600 or from the bulls to defend the 5600 zone for a new move back up or at least to stop the rot.

 

Index : ASX200 Index

Current Price : 5712

Status : On watch for a reaction higher

 

 


Previous Alert 23/10/18

ASX200 Index Review

 

ASX200 Index

The ASX200 is still coming under fire from selling pressure but is down at a zone where we expect to see a reaction higher…the question now is what sort of reaction? We see the 5800 ideal for buyers to step in as price is stretched into this zone but the key will be whether its a grind higher (which we will then expect to see a retest of the lows) or a pop followed by lower highs for a potential deeper move lower below 5800 (refer to chart below). We are still on guard and will not load into the market heavy as there are still a lot of global headwinds for stock buyers…happy to wait and see the price action we prefer to play out.

 

Index : ASX200 Index

Current Price : 5858

Status : On watch for a reaction higher