Australia Stock Market ASX Current Status? Bullish,Bearish, Neutral. The Australian market is heavily tied to China and also commodities. Last couple of months, both China and Commodities have been very volatile. Let’s see what the long term “picture” for the market tell us.
Below is the quarterly chart for the ASX provided by eSignal. You can a nice bullish trend that started at end of 2011 that topped out at 6000. After that, the markets have pull back to the cloud. The key quarterly support level holding the market in a bullish sentiment is 4852.90. As long as this support hold, it will remain bullish. Even with the sentiment is bullish, it doesn’t mean it is a trend. It could be in a bullish consolidation pattern. The chart shows there is a major resistance at 5345 which is stopping price to go retest the high and break it!
Let’s see if the Monthly time frame can give us any hint on if the support/resistance is going to break.
Below is the monthly time frame. The Quarterly support is holding price and stopping it from going into the monthly cloud and changing the sentiment from bullish to neutral. There are two resistances on the monthly. The level at 5345 is the same as the quarterly so this is a time frame match and is the major resistance. The minor resistance is 5217.20.
Overall, we are going to consolidate in a huge range between 4852 to 5345 with probabilities to the bullish side since the sentiment on the weekly/quarterly is bullish. We will continue to look for bullish opportunities with multiple time frame supports on the lower time frame until we get to the major resistance at 5345.20.
Here are the top stocks in Australia that are truly bullish i.e. the sentiment is bullish from the 60m time frame to the monthly time frame:
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.
