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ASX200 Index Analysis
Time Frame : Intraday 30 min Chart
The ASX200 is failing at 5283 and today just may be the start of the breakdown. Bulls will need to put in an effort into the close to hold price up but we fear that the move lower is already underway with the lower high below 5283 holding. The question is whether price will fall apart and drive through 4665 or not. There is a good argument for each side but it is still too early to tell from the current price action. All we can do is trade what we see and analyze the new data and price action as it unfolds.
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Index : ASX200
Current Price : 4953
Status : On watch for price to retest lows
Alert History
Previous Analysis 19/03/20
ASX200 Index Analysis
Time Frame : Intraday Hourly Chart
The ASX200 has been hammered since the last alert which is below. There was a lot of heat to come out of the action but no-one expect the selloff that is happening now. We have to remain calm and remember that there will be a bounce and some great opportunities to follow but we are simply trying to analyze when we may start to see some buying action. To take a look we have dropped down to the lower timeframe hourly chart to see what the recent price action is telling us. There is some weekly support that may be the target around 4700 but I feel that buyers may be starting to get the nerve and step into the action as we can see that the dynamics have changed slightly. From the chart, you can see areas of expansion lower through the crash with no real spike higher….that is a move down of over 2000 pts before buyers spiked price higher. Price has also shown signs of momentum easing around the 4895 level. We may still have some way to go lower but it looks like this is the first time that buyers are starting to put up a fight and remember that the story of the coronavirus is well and truly unfolding and the market is forward looking. We are watching now to see if buyers can start to step in again to support 4895 or lower to 4700 as stimulus continues to get pumped into the system. Ideally a push up through 5310 and potentially 5550 will signal a bounce. I feel that things can not fail and Central Banks will not let them even if they have to borrow from future income to stop the rot.
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Index : ASX200
Current Price : 4953
Status : On watch for price to find some early buying strength
Previous Analysis 25/02/20
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
