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
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Entry Level: 7,130.6 pts.
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Protective Stop: 7,189.5 pts.
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1st Profit Target: 7,095.4 pts.
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2nd Profit Target: 7,055.3 pts.
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3rd Profit Target: 7,010.9 pts.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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