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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
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
More View more
Real Time News
  • WTI crude oil prices fell on Monday after signs showing that OPEC+ members may not reach an agreement to rein production in a Monday meeting. WTI has registered a whopping 36% gain this month through to November 25th, entering overbought territory according to the RSI indicator. https://t.co/UYde6fioQg
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lXacDkdsla
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.91%, while traders in EUR/USD are at opposite extremes with 76.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Fcv9uguJsP
  • #Gold prices challenging key support at the 50% Fib (1763.27) as the RSI registers its most extreme oversold readings since 2018. Gut-check time for #bullion bulls... #XAUUSD https://t.co/H6EU8mN1sW
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇬🇧GBP: 0.19% 🇨🇭CHF: 0.13% 🇪🇺EUR: 0.05% 🇦🇺AUD: 0.01% 🇨🇦CAD: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eIxfGpBn51
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.54% US 500: -0.72% Germany 30: -0.79% France 40: -0.79% Wall Street: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/kHZ9KNcOvx
  • 🇯🇵 Housing Starts YoY (OCT) Actual: -8.3% Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:🇯🇵 Housing Starts YoY (OCT) due at 05:00 GMT (15min) Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Learn why dividend stocks are favored by investors and why it might be the right choice for you here:https://t.co/VUsJFHBARb https://t.co/Brit0AFo8e
  • China National Offshore Oil Corp (CNOOC) plunged nearly 10% in Hong Kong on Monday after Trump Administration put it onto export blacklist alongside several other Chinese firms.
ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

2018-02-06 01:30:00
David Cottle, Analyst
Share:

Talking Points:

  • The ASX 200 has lost 2.7% at the open as global stocks buckle
  • However the index still remains close to ten-year highs
  • And its broad uptrend would seem to have quite a lot of fundamental support

Join our analysts to trade all the major global economic data and interest-rate decisions live and interactive at the DailyFX Weabinars

The ASX 200 is sharing fully in the wave of uncertainty which rocked US equity markets so hard on Monday and which has carried through into an Asia Pacific region which already had its doubts about equity valuations.

The Dow Jones Industrial Average and the S&P 500 both suffered their worst daily loss since 2011 in the previous session.

The ASX 200 has retreated substantially again at Tuesday’s open. Its retreat from last month’s ten-year highs has accelerated and it has plumbed lows not seen since mid-October, 2017.In the process the broad range which has contained trade for over a month.

ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

The last two days have already seen the 23.6%, 38.2% and 50% retracement levels of the entire rise up from the lows of early October. 76.4% retracement hovers a hundred points or so below the market at 5670.9. It is notable that that level and, of course, a complete retracement of the entire rise would take the index below the narrow, 150-point range at which investors were happy to hold the index between May and October of 2017.

ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

In such a febrile fundamental atmosphere the uncommitted may be best served by watching Tuesday’s close for a real gauge as to how much trouble the index may be in from the bullish standpoint.

Some sense of perspective may be gleaned by a look at the ASX 200’s monthly chart. For all the current turmoil the index remains elevated by the standards of the past ten years and it also looks quite comfortable in the long uptrend channel which has endured since the world began to emerge blinking from the worst of the financial crisis in March 2009.

With local, Chinese and US economic numbers all reasonably strong and, crucially, expected to remain so, this doesn’t objectively look much like the precursor of a general equity rout, more the admittedly rapid loss of some froth from a market whose recent gains had taken it up to quickly.

ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

That monthly downtrend channel’s base still lies some 800 points South of current levels and looks safely remote. However even at this longer range it is worth noting that a more recent uptrend channel, from February 2016 is now under a bit more threat.

ASX 200 Technical Analysis: Falls Accelerate, Broader Uptrend Safe

--- 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