ASX 200: Watch the Price Action Before to Sell

EagleFX Team EagleFX

The Australian index ASX 200, in its hourly chart, shows a breakdown of the ascending trend developed from last January 31st low at 6,899.6 pts.

The powerful bearish candle observed on Tuesday trading session, which makes it lose the previous swing low at 7,156 pts, makes us suspect that the Australian index could visit fresh lows.

If ASX 200 continues its intraday recovery, a confirmation signal would be if the recovery does not surpass the range between 7,155.5 and 7,167.3 pts.

A bearish position will activate if price breaks and closes below 7,130.6 pts. In a conservative scenario, the first potential bearish target locates at 7,095.4 pts. The downward continuation could drive to ASX 200 until 7,055.3 pts, and even till 7,010.9 pts.

The level that invalidates our bearish scenario locates at 7,189.5 pts.

Trading Plan Summary

Entry Level: 7,130.6 pts.
Protective Stop: 7,189.5 pts.
1st Profit Target: 7,095.4 pts.
2nd Profit Target: 7,055.3 pts.
3rd Profit Target: 7,010.9 pts.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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