Recommendation for ASX 200 Index: Sell
Sell Stop Below 5077.09
Stop Loss Above 5318.50
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Neutral | |
| Donchian Channel | Neutral | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell | |
| Fibonacci | Buy |
Chart Analysis
On the four-hour timeframe AU200: H4 is retracing lower below the 200-peiord moving average MA(200) which is falling. We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 5077.09. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 5318.50. After placing the pending order the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (5318.50) without reaching the order (5077.09) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
Rising unemployment and continuing contraction in private sector of Australia negatively impact its stock market. Will the AU200’s rebound reverse?