Technical Analysis Education - Simple TA on Weekly Chart - XJOTechnical Analysis Education:
ASX200 (ASX - XJO) Weekly Chart
For those of you out there who are new to trading, I like to keep my TA simple and clean. I also like to look at the bigger picture to understand what's happening right now. There can be a lot of confusion when an event such as a market crash happens. We can be reactive and emotional, which is normal, but not helpful.
See below the #XJO which tracks the ASX200. On the weekly charts its a clean upward channel, going through from the end of the GFC to now. Strong bullish trend with healthy pullbacks (corrections) You will note that the points value moves within this channel, bouncing as it goes.
Some points to note on the chart:
1. We are still in a #bullish market trend on the weekly timeframe (exclude the smaller time frames)
2. We haven't broken any major support levels.
3. We can expect to keep falling at least another 6% to said support.
4. We are still within the key #fibonacci levels of 38.2, 50 and 61.8. These are healthy retracement levels.
When to be concerned?
If we broke through our trend lines and fell below 5,800 points, we could potentially fall to 5,000 points or lower.
Make sure to look at the big picture!
Hope this helps
