Saturday, 27 August 2016

ASX 200 beginning 1300+ point decline? Monthly, weekly, daily, 4 hour charts

This post makes the case that the ASX 200 is beginning a large decline, likely of at least 1300 points. Charts are log scale and include all sessions trade.

Monthly chart first. Market kissing goodbye to the trend line drawn from the lows of 2009 and 2011?

Weekly chart wave count calls for another five waves down from current levels, a decline that will likely be of greater magnitude than the 5 wave decline from early 2015 to early 2016, which was 1300 points.

Daily chart shows that short term trend line support has broken. It also highlights the 5400 level, which is obviously the key level that the market must break if the bearish case is to eventuate in coming months.

4 hour chart zooms in on the trend line break and calls for a small degree third wave lower, which would see the key 5400 level being broken over the next week or two. Let's see. Charts are not best used to make forecasts, but they provide a powerful tool to measure market behaviour and to make decisions based on that behaviour. I know what I'm looking for, I know what I'll do if it eventuates, and I know what I'll do if it doesn't.