Stock Market Analysis Report 9-19-18...Australian Stock Exchange..Is The Pain Over???

The ASX (Australian Stock Exchange Limited) was formed in 1987, is the largest exchange in Australia and is one of the top exchanges in the world with a market capitalization of about 1.2 trillion US dollars. Some of the companies traded on the ASX include, Qantas Airways, Rio Tinto and the Westfield Corporation.

SIDE NOTE: In 2017, the ASX announced that it would become the first stock exchange in the world to build an infrastructure around blockchain technology.

The S&P/ASX 200 is an index that benchmark’s the ASX. It is based on the 200 largest ASX listed stocks, but Standard and Poors usually balance the index every quarter. Besides the Shanghai Exchange,

the ASX 200 has also been hit very hard by the US-China tariff war. Because the Australian economy is a base metal exporting economy, as China goes, so does the Australian economy. The ASX 200 recently had a period where the index had seven straight down sessions which almost equaled its worst performance since the Great Recession of 2007-2009. Whats also hurting the ASX 200 are issues surrounding emerging markets and the strong US Dollar as the US Feds continue to raise rates. So how much more downside risk does the ASX 200 have, lets go to the charts to find out?

Monthly Chart (Curve Timeframe) – monthly supply is at 6650 and monthly demand is at 4900

Weekly Chart (Trend Timeframe) – the trend is to the upside with weekly demand below at 5975 and weekly supply above at 6640.

Daily Chart (Entry) – after multiple down days, price found buyers at 6105. The long extended range red candles implies there aren’t any sellers until price gets back to the daily supply at 6355. The chart suggests price will retest the 6105 level before continuing higher to 6355.

However, if price breaches the 6105 level, expect the sellers to sell price down to the next level of buyers a bit below the 6000 level.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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Published on

by rollandthomas

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