Australian Stock Index Technical Analysis | Australian Stock Index Trading: 2020-05-20 | IFCM
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Australian Stock Index Technical Analysis - Australian Stock Index Trading: 2020-05-20

ASX 200 Index Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 5603.71

Buy Stop

Below 5251.56

Stop Loss

Ara Zohrabian
Senior Analytical Expert
Articles 2451
IndicatorSignal
RSI Neutral
MACD Buy
Donchian Channel Neutral
MA(200) Sell
Fractals Buy
Parabolic SAR Buy
Fibonacci Buy

ASX 200 Index Chart Analysis

ASX 200 Index Chart Analysis

ASX 200 Index Technical Analysis

On the daily timeframe AU200: D1 is rebounding toward the 200-period moving average MA(200) which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 5603.71. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 5251.56. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (5251.56) without reaching the order (5603.71) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental Analysis of Indices - ASX 200 Index

Australia’s consumer confidence improved while trade surplus increase bigger than forecast. Will the AU200 rebound continue?

Australia’s economic data in the last couple of weeks were not as bad as feared: unemployment rise in April was not as steep as feared whereas consumer confidence improved in May. The Westpac Bank Consumer Confidence improved 16.4% in May after 17.7% deterioration in April. At the same time unemployment didn’t increase as much as feared: the unemployment rate rose to 6.2% in April from 5.2% in March, when a jump to 8.3% was expected. Furthermore, Australia’s balance of trade surplus rose more than expected: the surplus jumped to A$10.6 billion in March from 3.87 billion in previous month when an increase to 6.8 billion was expected. Better data are bullish for AU200. On the other hand, further deterioration of Australia’s economic performance is a downside risk: the Commonwealth Bank is due to report the composite PMI for Australia on Thursday, and a slight improvement in private business activity is forecast. An accelerating contraction in private sector activities in May will be bearish for AU200.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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