ASX dragged lower by the DowThe Dow Jones futures market fell for an 8th consecutive day on Monday, a bearish sequence not seen in over 12 years. And that's not good news for ASX 200 bulls, as the index tends to track the Dow very closely.
The daily chart looks like it wants to head to 8200, and it just 1 - 2 bearish trading days away from it looking at a typical day's range. The 1-hour trend has favoured bearish swing traders, who could seek to fade into moves towards the 20-50 hour EMAs.
Aus200analysis
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AUS200Dear friends, what we are going to see in this post is why I'm waiting to go long on AUS200.
Price was travelling in the downward direction in the 4h time frame and now it is the verge of a breakout. As it is a breakout for the first time from the downward parallel channel, price will reverse as there is a supply zone at 7146.00 to 7183.80. Even though price is near to the 8h supply zone still price is coming from the strong demand zone. Now you can see there is a heavy buying pressure. Whatever AUS200 goes towards the supply zone still it is coming from a strong demand zone. So, shorting at this time is little is a bit risky but small profit can be expected. Don't expect too much. Just book the profit if you are shorting and sit quietly for the price action. Because it is very important to stay protected our capital in the stock market.
If you look at this chart the price has a strong support to retest to go upside. Trend is down in the lower time frame, and it is up in the higher time frame. As we all know that higher time frame controls the lower time. So, if you want to go short, yes you can. But don't expect too much. Price may or may not go up quickly. But all I expect is that the price will go down to take a strong support and then go up. If you are a breakout trader and you're on the verge of the market high, then you can plan your risk accordingly.
The current supply zone will prevent the price from going up. The traders who have taken the long position entrap bulls. Everyone rushes to open a long position as the price is going up rapidly. But after opening the long position the price starts to fall after the frenzy that heats up our head. If the price of this script starts falling, then the best place to open a long position is at 7029.00 or 6921.00.
Look at the chart attached for a better clarity. Avoid buying in haste. Perhaps 7110.00 is a good place to buy this stock if it closes above 7200.00.
But it is wise to follow your risk management before taking entry.
I love to share my ideas. Feel free to revise the text and provide feedback. It makes it so personal and improve us in better ways.
Thanks & Regards,
Alpha Trading Station
Disclaimer: This view is for educational purpose only & any stock mentioned here should not be taken as a trading/investing advice. We may or may not have position in the stocks mentioned here. Please consult your financial advisor before investing. Because Price is the "King of Market".
FXOPEN:AUS200
AUS200 LONG - Buy Entry - H4 ChartAUS200 LONG - Buy Entry - H4 Chart
Buy @ Market or Buy @ Break of 7394.78
Symbol: AUS200 - SPI200
Timeframe: H4
Type: BUY
Entry Price: Buy @ Market or Buy @ Break of 7394.78
TP - Resistance @ 7768.01
Last High - TP - Resistance @ 7648.47
TP - Resistance @ 7537.31
Resistance @ 7394.78
MN Support @ 7304.74
PP Y1 - Pivot Point Yearly @ 7191.90
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