Technical Analysis AU200 : 2020-09-10

Recommendation for ASX 200 Index: Sell

Sell Stop : Below 5815.27

Stop Loss : Above 6123.13

Indicator Value Signal
RSI Neutral
Donchian Channel Sell
MA(200) Sell
Fractals Sell
Parabolic SAR Sell
Fibonacci Neutral

Chart Analysis

On the daily timeframe the AU200: Daily is retracing lower under the 200-day moving average MA(200). We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 5815.27. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 6123.13. After placing the 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 (6123.13) without reaching the order (5815.27), we recommend cancelling the order: the market has undergone internal changes which were not taken into account

Fundamental Analysis

Consumer sentiment, retail sales rose while trade surplus declined in Australia. Will the AU200 decline continue?

You do realise that the ASX is very heavily tied to the Dow Jones. So if there is a boom or bust day on the Dow the ASX will usually mimic that move??

I don’t trade the ASX200 but if I did I would only have a bias in any direction based off what happened the night before on the Dow.