Thursday, 7 April 2016

ASX 200 technical parallel to June 2008 warns cascade decline could lie dead ahead

ASX 200 weekly chart shows the 40 and 18 period moving averages bearishly crossed, and that the market has just moved lower through the 18. All charts in this post include all sessions trade.



Next ASX 200 weekly chart illustrates the 18 months of action following the 2007 peak. In June 2008 (circled) the market displayed an obvious parallel to the current market illustrated in the first chart. That is, the 40 and 18 period moving averages were bearishly crossed, and that the market moved lower through the 18.



Might the parallel continue? If so, the following monthly chart illustrates what lies ahead. Let's see.



No comments:

Post a Comment