News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/Dx6UMk2g1c
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.53% Oil - US Crude: 0.35% Gold: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BjCmKqaBM8
  • The two-day closure of the Japanese markets suggests that liquidity in both equity and forex could be thin, rendering #USDJPY and #Nikkei225 futures susceptible to large swings, should there be surprising news. Read more here: https://www.dailyfx.com/forex/market_alert/2020/09/21/Nasdaq-100-to-Test-100-Day-SMA--Hang-Seng-and-ASX-200-May-Open-Flat.html https://t.co/5fTJl1ytSe
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.20% 🇪🇺EUR: 0.16% 🇳🇿NZD: 0.14% 🇨🇭CHF: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ajs1wgZFD2
  • #Market Snapshot Broad risk-on tilt to kick off a fresh week of trade as the risk-sensitive $AUDUSD jumps back above the 0.73 mark. Haven-linked $USD drifting lower against its major counterparts while $JPY attempts to peg back lost ground. https://t.co/yWVnyRKfbT
  • The US #Dollar may fall if demand for haven-linked assets fall after testimonies from Powell and Mnuchin to the House. Better-than-expected data may compound the Greenback’s selling streak. Get your #currencies update from @ZabelinDimitri here: https://t.co/HRjFvPKlvx https://t.co/n2IMVDqpZn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in NZD/USD are at opposite extremes with 71.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eoCmgXp0MN
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/QVVQkoSwMW
  • The S&P 500 index may struggle in the near term – drifting sideways within the bounds of its Bollinger Band – but the overall trend still looks bullish. Get your #equities update from @margaretyjy here: https://t.co/BysksU7lWj https://t.co/UV0hFkZBte
  • #EURUSD Breaking Down, #tiktokban Averted. Biden Leads Trump in Polls https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/20/EURUSD-Breaking-Down-TikTok-Ban-Averted-Biden-Leads-Trump-in-Polls.html
ASX 200 Technical Analysis: Evolving Pennant Trumps Double-Top

ASX 200 Technical Analysis: Evolving Pennant Trumps Double-Top

2017-12-11 01:36:00
David Cottle, Analyst
Share:

Talking Points:

  • Last week the ASX 200 stood at a crossroads
  • A bearish double top formation was possible, but so was a much more bullish pennant
  • Now it looks as though the latter prospect dominates

Trade all the major Asia Pacific economic data impacing the ASX 200 live and interactive at the DailyFX Webinars

When I last looked at the ASX 200’s charts a week ago they seemed to offer two possible futures.

The trouble was that they were mutually exclusive. One prospect was that of a classic, bearish double top. In that scenario the index would have peaked again at the highs of early November but failed to push on, presaging a broader, deeper fall. That might have put the entire climb up from October’s lows into sinister focus.

Now it’s still a little too early to rule out that possibility entirely but, a week later, it does look far less likely. The index did make a second top on November 28 but, had the formation held, then it seems most unlikely that the subsequent falls would have run into support as soon as they did.

ASX 200 Technical Analysis: Evolving Pennant Trumps Double-Top

So, if we write off the double top, what does that leave us with. Well, for the bulls it’s quite good news. For the other possibly scenario I wrote about last week was a pennant formation. And that seems to have been confirmed in spades.

As you can see the ASX bounced at the pennant’s uptrend base on December 5, only to peak out at its downtrend top on December 8.

ASX 200 Technical Analysis: Evolving Pennant Trumps Double-Top

In short this pennant has plenty of confirmation and is usually seen as a ‘continuation pattern.’ What that means is that, once the pattern plays out, the market should continue to behave as it did before the pattern started. In this case of course that would mean that it starts to climb again. Of course, it could be some time before it does so. As you can see from the chart this formation could be with us until the early days of 2018.

But it certainly bears watching. Assuming it holds then support should come in around 5945, with subsequent resistance in the 6008 area. If we see another trough and peak around either of those levels, then it will be a very strong sign that this constructive pennant is holding and that the bulls can hope for good things.

A word of caution is order though. Pennant or no pennant the ASX has not looked particularly comfortable above the 6,000 mark for quite a long time. Forays there have been brief going all the way back to 2008. It will take a lot to overcome this ‘muscle memory’ even if the index’s climb resumes.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES