Tuesday, 18 August 2015

ASX 200 breaks further through weekly chart trend line supports

Weekly chart shows the ASX 200 breaking further below medium term trend line supports. All charts include after hours trade.

Daily chart shows the market now trading below short term trend channel support. Don't rule out a false break lower and a rally up toward the nearest resistance line.... why? 4 hour chart illustrates... First the daily.

4 hour chart zooms in to show a short term Elliott wave count, suggesting possible rally in to the 5450-5500 zone. This is perhaps wishful thinking on my part as I'd like a nice little rally to add low risk shorts. That said, the count is clear, for what it's worth. Let's see.

S&P 500 futures rally through trend line resistance

Daily chart. To state the obvious, there have been many many false breaks during the choppy trade of recent months. Doesn't mean this rally won't follow through, but it's premature to get too excited about the bullish potential. Downside levels to manage risk are clear and nearby.

Hang Seng again testing weekly chart trend channel support

Weekly chart shows the Hang Seng again testing trend channel support.

Daily chart shows the market is close to a confluence of trend line supports. If both illustrated support lines break, this thing will tumble hard. Til then, don't rule out another rally.