Australia’s ASX 200 index on last trading session closed at 5046 with loss. On daily chart index is in absolute downtrend and with fresh bearish signals on indicators.
Asx is heading towards previous bottom low of 4936 and this time might break that level and test 4900-4850 zone. All short to medium term trend are down for index.
On downside expect support level as well as target zones at 4970 then 4910 and last 4850. On upside 5150 is strong resistance as well as stop loss level for traders.
Closing below 4850 on daily basis means margin call situation and expect sharp downside as soon as ASX broke 4850 level.
On weekly chart, asx is going through bottom formation process. In addition, from long-term investors every downside is investment opportunity. Near term, volatility will remain high on news flow, metal crash and political crisis.
For month of Sep, pivot point theory suggesting sell side and target zones at 4870 and 4515.