Lotto

Wednesday, February 17, 2016

ASX 200 (XJO) 18/02/2016 Trending Down

This post highlights the ASX 200 ( XJO) Weekly Chart.

The reason for the weekly is that the markets all overall the world are being hit with global news trends. Of course the big non stop noise is about China.

The issue is that no one really knows the real mess in China apart from the Chinese Government Elite.

Mean while as China comes back to economic realities Commodities are coming off the boil.

But the logic is not as the news makes out a bad thing.

Lets think for a minute???

Cheap oil is good for business, unless you are in the oil business.
Cheap China goods are good for consumers and China companies getting export orders.
China wants to turn back the clock and devalue the yuan for the simple reason, CHEAP sells.

So Australia is caught in the middle of the cross fire of the Chinese balloon deflating.

However the economic clock must turn eg more export orders more demand for resources more orders for Australian commodities. Its only a matter of time.

Lets look at the Weekly Chart.

   
As you can see the market is a down trend, 4,641 is a highly likely area of support as it was the previous bottom. If it breaks that level then  4,245 is on the cards. The yellow zones are areas of support or resistance, which have done little to stop the falling trend.

I have recently gone back to looking at the weekly charts as they really do show the BIG picture.
In this case the Heads and Shoulder pattern was very obvious.

It will take a lot of energy to 1. break the yellow zone moving up and 2. break the trendline (in blue).

Happy Trading.
RST.