The monthly chart of the ASX 200 displays a downward breakout from the ascending triangle, forming since September 2011, offering a target of the 2008 low at 3200*. Reversal of 63-Day Twiggs Momentum below zero also suggests continuation of the primary down-trend.
* Target calculation: 3800 – ( 4400 – 3800 ) = 3200
Hi Colin
What are the odds it will respect the 4040 level like today or 3800 or are we heading for a GFC low
cheers
Tony
The odds favor a re-visit of 3200. If 3800 is broken then they move into the high probability range (> 80%).
Have a birg relation with USD,
I understand the relationship with USD and commodity’s but the lower AUD will make our commodity produces ATM machines
Falling commodity prices are offset for local miners by the falling AUD — so they may come out even on price measured in AUD — but will be hurt by falling export volumes.
I mentioned that to you about a month ago Colin
Cheers
Barrie
May 19th: “If 4000 doesn’t hold then next support is around 3860 and from there 3750 and finally 3200.”
On the monthly chart the symmetry of the support levels is clear: 5000 >> 4400 >> 3800 >> 3200.
I have gone through a number of your charts and I would like to express my honest admiration. Your work is an icon to follow for me. It’s gonna be a long way though.
Thank you. Yes. It’s a tough road ahead.
Go long with stop at close below 4100 for 2 days. Have seen an inverse hanging man on the weekly charts. the trade below was planned 2 months back. Currently the risk reward ratios are phenomenal.
$AORD (Australian Index) – Buy with stop at 4200 for 75% and 25% at 3900 for target of 4800 and then 5100. As of now this is the most bullish index.
STOP OF 4200 HIT. NOW ADD TO POSITION WITH STOP LOSS FOR THE COMPLETE POSITION AT CLOSE BELOW 4100.
Trading against the direction of the primary trend on the strength of a weekly (inverse hanging man) candle?