AU200 - more selling to come....before the LONG....

Let's begin with the monthly - we can see the market has aggressively rejected the top of trend line after creating new all-time high at 7600 zone.
The Strong support is down at 6800 zone - previous all time high.
The monthly suggests we may see more selling.

Note

The Weekly shows the strong rejection at the top but it also shows strong support at 7200 zone

Note

Here is the Daily as we are viewing now - market just opened.
After the craziness of the last two days market has rebouded sharply off a small trend support (purple line) and horizontal support (blue line).
We are looking for the retracement to the 382 and 50%. Failure to reach tthe 382 will proide clear indication that more downside is to come on the daily.
The faint yellow line is previous ATH and strong support 7100-7200 zone.
The bright yellow line at 6880 zone is first ATH.
All in all I would not be looking for a long but waiting for strong supports to be reached.

Note

We have reached a strong support and a double bottom - I am looking to be a buyer but not just yet as the price action is still too bearish.

Trade active

Took the trade at the 1.618 extension reversal of the last swing - below the bright yellow line representing first ATH and one of our entry targets.
If you are in we'll look to see if we can reach the 382 retracement.
It's a risky market atm so we can't be too greedy...

Trade closed: target reached

Our target was hit and we were taken out with a very profitable 1:5 trade.
Yes we could have made more but that was not in our plan.

enzenator

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enzenator