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AXJO

ASX: Australian stocks in need of a stronger pull back.The Australian stock market (AXJO) is currently rising after a strong pull back that took place in July. This rejection happened because the market reached its All Time Highs of October 2007. Despite the rather strong selling manner in which it was conducted, we believe that this sell sequence is not over yet and a stronger correction is needed. The reason for this perspective is that the very same long term pattern on the 1W time-frame has been spotted back in 1994, when the ASX again pulled back after testing its (then) All Time High. The selling only stopped when the 1W MA200 came in for support. We are expecting a similar price action and even though the correction on 1994 was more than -20% we expect this time just the 1W MA200 to be enough to support and initiate then next long term bullish leg. Use this pattern according to your own risk tolerance and strategy but this is our approach for the right time to re-enter this market. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
ASX:XJO
by InvestingScope
A mix of tech and fundamental analysis produces a sell signalCCI - Drifting from overbought back into the channel indicating reduced upward momentum. MACD - Look at the MACD crossover from relatively high level. A very powerful signal on a daily chart. DeMarker - Moving from overbought falling firmly into the channel. RSI - Bearish divergence. Linear Regression - Bouncing off the top of the channel. Also powerful signal. Bollinger Band - Bounce off the upper band to its average price. The moving averages are indeed trending higher, but I dont this will be maintained for long. Moving averages can't look like this forever. Fundamental Analysis - The Australian economy is slowing and unemployment is rising. Lowered Chinese growth and lower commodity prices are starting to take it's toll on the economy. Yet the ASX is at an all time high.... I can't see how this can last.
ASX:XJOShort
by maccabean
1
ASX200 set for a 160 point drop MINIMUMThis chart is a little confusing but I'm attempting to show two sets of evidence that build the case for a drop in the ASX200 of 160 points to the support of ~5368 as a minimum movement. The first set of information includes the blue arrows and the black resistance line at 58 points above the zero line on the MACD signal chart and the green text boxes. We can see that each time the blue MACD MA, hits the resistance line, reaches a peak and starts to drop, it was followed by a 160 point minimum. You can't see it correctly, and in this chart, the price feed is a little delayed, but just in the last few days, the blue MACD line has indeed peaked and has just started to roll over. The second set of signals is represents my natural human instinct to determine patterns. This short signal is represented by the yellow ellipses and the blue A letters. What I'm seeing is a repetition of the price movement that occurred this time last year. Both yellow ellipses demonstrate similar price and MACD movements. Following the price movement in the yellow ellipse in Oct 2013, the price dropped by almost 300 points to the previous low (after immediately and quickly rising), destroying all the short position taken up by speculators . The question begs, will the same type of movement happen again and will the price drop to the previous low after a rapid price increase? The MA movement in the MACD chart is repeating itself as evidenced by the letter A. The Australian economy is not firing all cylinders and there is a lot of talk about an Australian recession in 2015. There are a number of reasons for this which I won't go into now including Australia's main export Iron ore selling very cheaply as China's property market faces serious challenges. However, as we can see, the ASX is very close to record highs. This does not make any sense. The ASX200 highs are probably following the lead of the US markets, however it does not represent the the fundamentals of the Australian market. With the Australian dollar at historically high levels, I predict a correction in the ASX.
ASX:XJOShort
by maccabean
4