Trade view /
08 August 2017 at 8:22 GMT
The weekly chart highlights the strong bullish channel, and although price action has been mixed since June, this is still nicely supported by the weekly Ichimkou cloud.
Breaking this down to a daily chart, the double top formation and subsequent break lower in April-May has overshadowed progress so far in 2017. Since then spikes in both directions have seen prices contained within a symmetrical triangle. But there are some supportive structures in the form of the 200-day moving average, which continues to influence to dip buyers.
While the index is in the bullish channel, we remain positive on the market and also look to continue to buy dips unless the support breaks (June 8 low at 5,625 points). Upside progress will not be an easy task as the daily Ichimoku cloud continues to cap rallies, but this would provide an immediate support if the bulls are successful. Momentum remains neutral after recovering from the negative levels in May.
The 2015 yearly high (and psychological level) along with this year's peak, provide two achievable targets.
Entry: Buy AUS200.i at current levels (on a dip at 5,680 points)
Stop: Break below 5,625
Target: 5,960 and 6,000
Time horizon: 2-6 weeks
Daily chart highlighting the symmetrical triangle
Weekly chart showing bullish channel
— Edited by John Acher
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