Yesterday in the Australian market there was no follow through from Monday's strong bullish reversal. As I stated yesterday, position traders should continue to look for long swings only ABOVE 4840. In the short term, the trend remains down and we are indicated at 4755 in early trade, below yesterdays lows. I do have a strong target area at 4745/4750 for this down move and this really must hold to keep my bullish scenario intact.
SPI 60mins:
4745/4750 is an open gap, an A=C target, the low end of a parallel trend channel, and the 50% retracement level. Thus, this should be a strong confluence of support. However, as ever, wait for price action to confirm and look for price to regain 4765+ as a trigger
SPI 15mins:
We are indicated below yesterdays lows. Look for bullish reversal candles out of 4745/4750 to get long or wait for price to regain 4770. The short term trend is down so use tight stops and be prepared to short and join the momentum if we cannot hold
I must also stress that yesterday was a rather choppy session for the SPI. Indeed, for the first time in several days, every time I hit the new intraday low price failed to follow through to the downside. This shows to me that these levels are being defended and momentum to the downside is slowing. We will soon see today if this is the case once more.
I will post some other Asian setups shortly
Thanks
Austin
