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Analysis

ASX 200 Could Scale up to 7,000 Points

In early November 2019, we presented the bullish scenario of the Australian ASX 200 index. The following chart published by our team on November 4, reflects the price surpassing the wave (D) labeled in black, of a triangular formation that made us expect new climbs from the Australian index. 

In this release, we update the next movements expected for the coming few days.

  1. A retracement towards the zone of 6,800 points to 6,760 points could allow us to join to the upward trend. Our conservative scenario points to a target of 6,846 points.

  2. If the price action continues its upward course, the ASX 200 rally could reach up to 6,925 pts and even 7,005 pts.

  3. The scenario will be invalid if the price drops below 6,705 points, or if ASX 200 moves up but does not close above 6,790 pts.

  4. The exhaustion of stock markets, which are in record highs, could lower the chances for our bullish scenario.

 

Trading Plan Summary

Entry Level: 6,790 pts.

Protective Stop: 6,705 pts.

1st Profit Target: 6,845 pts.

2nd Profit Target: 6,925 pts.

3rd Profit Target: 7,005 pts.

 


 

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