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S&P/ASX 200

Breakout Coming Soon $XJO ASX200 We are trading inside a rising wedge. A big breakout move is coming in the next few days/weeks. Currently, as long as the SPX is still making new all time highs, I think we will have a small pullback towards the trendline/bottom of the wedge before breaking out to the upside. However, it is possible that the SPX (US market) to go down after the APPLE stock split and Dow Jones Industrial rebalance. If the US markets goes down, XJO would most likely follow. Dow Jones Addition/Removal #Salesforce will replace #ExxonMobil, and #Amgen will replace #Pfizer, and #Honeywell International will replace #Raytheon Technologies in the Dow Jones Industrial Average effective prior to the opening of trading on Aug. 31.
ASX:XJO
by johninvest17
Is the Stock Market going to CRASH?!?!Is the stock market going to crash?!?! I reckon about 50 people a week ask me this question! The reality is that we have never experienced this kind of crash before, we have never fought COVID before and we are seeing a huge amount of stimulus from our governments. Even the most experienced traders and investors are struggling to predict the market. Here is what I know: • It's a crazy time, with things changing daily • The market has recovered well since the crash, but it's not yet "technically safe" • We are going through a digital evolution, meaning that things are different. Business is different. Life is different. • Companies are announcing loss in sales and increase in profits at the same time. Profit is what matters. • We are never going to see "work" in the same way again. • There is a huge amount of misinformation in the media • There is an even bigger amount of misinformation coming from the public (the new media - how ironic) • The stock market responds to supply and demand. You might think a stock is overpriced (and it may be), but if another person is willing to pay that price, is it 'overpriced', or just... 'priced'? • A company is not it's stock price. Read this 3 times. • An index is not a company. Read this 3 times. The world is changing and evolving. Here is my suggestion to investors and traders: Don't try to predict. Instead get really good at adapting and even better at reacting. Use technology to your benefit. Computers are better than us at processing things, we are better at strategy. Manage your risk every second of every day. Never stop doing what you love in he trading and investing world, instead, proceed with caution and have an exit strategy. Technicals: The below chart is how I personally see the ASX right now. We are looking very bullish technically, with a huge ascending triangle on top of a trip wire on the daily. We also have an ascending triangle on the 4hr. We are pressing against resistance right now. A push through could see us making new recent highs and moving up a couple of hundred points. If we do, be careful as we are going to hit a major supply zone, which could trigger a reversal. A push through this second level of resistance could see the market heading in a longer term positive direction. Marked on chart. Another thing to note, we are right on the 61.8 Fibs, a prime position for a reversal to occur. Does this mean the market is going up? No it doesn't, but it looks like it wants to. The market is a flaky, fickle, 2-faced, sadistic creature. Remember what you are dealing with. Be careful, its not your friend and it doesn't care about you. Does this make you feel bad? Why? Now you know what you are dealing with, you can milk it for everything it's worth. Your role as a trader is to take money from the market and put it in your pocket. Don't kid yourself, this was never a friendship. How I read it: It could easily go either way right now. Risk management is key. Invest in sectors that stand to benefit whether the crash happens or not. Read the following aloud to yourself: • Risk management is my number 1 priority • I'm going to do my own research and make my own choices • My friends and family aren't qualified to give me financial advice If you prioritise risk, you minimise loss. Its really that simple. Here's the thing, we just don't know what will happen. No one does. All the time you spend searching for someone to give you that answer could have been spent finding your next major trade. Spend it wisely. A couple of things to be aware of: - Australia follows the US. Elections are coming soon in November. - Jobkeeper is allowing companies to keep operating, it's potentially ending next March. - All business is changing. What you know today may not apply tomorrow. With that being said, I wish everyone an amazing week trading and investing! • Learn • Manage Risk • Adapt • Remove the ego • DYOR • Invest in what you know • Go your own way Have a great week 🚀
Editors' picks
ASX:XJOEducation
by glennleese
43
XJO - Heavy Resistance Zone So the last 3 months we have stalled around and up to 6150 it's obviously an important area but it's actually a VERY important area, the reason why we've had such a hard time getting through is not only due to the .618 Fib level but also we have a convergence of the 200 day MA and the 200 week MA, hence why we have stalled from a technical viewpoint, the outcome of this move (breakout or failure) will determine which way our market goes longer term. However I view it as bullish the fact that we have sort of hung around and consolidated below the zone, with no real major rejection, suggests that energy is being formed for a bigger breakout move to the upside which is common when a chart has consolidated below a key area. We'll have to wait and see
ASX:XJO
by Ravi2409
3
The trend is your friend, Go long until this breaks. It did $XJOWe closed below the trend line last week, can we get above it this week??? If we fail to do so, more selling will come and this could go for several days or weeks. The RSI indicator is still showing a downtrend and if we close below last week's low this week, (5893) it will trigger a sell signal with the TD sequential indicator. Furthermore, the MACD indicator is about to fire a sell signal... Therefore, be careful trading this week. Maybe, it is a good time to take some profits ...
ASX:XJO
by johninvest17
Stock to watch and potential Buy setup in $RMD Resmed. Resmed looking good using the Heikin Ashi candles. Technical Indicators such as TD Sequential, MACD, RSI, and the Squeeze are showing positive signals for further upside and potential breakout. Why? The pulse signal (red dots) on the squeeze indicator is telling us a big move is coming. While the MACD indicator is about to cross and provide a buy signal. If we do go down, the two moving averages (20 and 50) will likely act as support. I have added this stock to my watchlist.
ASX:RMDLong
by johninvest17
Mortgage choice(MOC:ASX) LongMortage choice Entry - 0.735 Exit- 0.925 Government stimulus favouring the property market in Australia. Overall optimistic sentiment due to better crisis control. RSI in mid-range but relatively overbought Classic Dow theory: Trendline support Risks 1. Expecting sideways movement next week and a breakout either way--> Tight stop loss 2. Retesting Accumulation zone @0.675 and 50MA 3. Bad news over the weekend (Unlikely) 4. Retailer panic selling(unlikely)
M
by ashainp
XJO end of 13/06/2020. Opening green next weekFinally, a pullback we've been waiting for. XJO was running way too fast and pullbacks are healthy in the long term. The pullback came right at the 0.618 FIB level. Tested the 200MA and will be interesting to see if we hold the 200MA next week. RSI is still relatively overbought but as the pullback was so sharp, I expect a green day on 16/06/2020 Monday. Apart from the technicals, other reasons for the pullback include 1. Fears of 2nd wave 2. End of financial year profit-taking 3. Federal reserve grim outlook 4. Riots Next week will be a decisive week in determining which direction the market is headed. The overall sentiment is optimistic but the market does not care. Next bullish target is 6380 level. All the best if you went Long on Friday on short-medium term positions.
ASX:XJOLong
by ashainp
3
My Bearish view of ASX200 and When to enter for the Long Term.For those that use the "Fib Speed Resistance Fan", our XJO hit 0.25 and retraced. Could we retrace back to the 0.382 in the coming days/weeks? Also, I wish I have found this earlier!! This has correctly forecasted the support line during the March lows. Furthermore, a good entry point for investing in the long term is when the " William R" is below the yellow and is rising from the bottom. The last three times this has picked the bottom! I will be watching these indicators at the next sell-off.
ASX:XJOShort
by johninvest17
2
FPH accumulation within the zone with trendline supportKeeping it really simple here since deep research and analysis are meaningless in this market. Historically strong trendline support Accumulation within the range, on strong support Long term moving average support 200EMA MACD oversold RSI oversold Can't ask for more technicals in check. The current market is underweight healthcare as economies are reopening. Regardless, FPH is a solid company with good fundamentals(if they matter anymore)
ASX:FPHLong
by ashainp
The #steepening continuesSome thoughts on the S&P/ASX200 (XJO) for any Aussies out there. Looking at the daily chart. 1) Price and RSI trends seem to be intact currently (would take a big fall to break today). 2) MACD working on but has not confirmed a bearish divergence 3) Willy overbought 4) We are about 5% away from the 200sma. I recon this will act like a magnet to pull the XJO higher, but then once we reach it, I recon we'll see some resistance. Could that then turn to support? Only time will tell.
ASX:XJO
by ncorreia