News & Analysis
AUS200 follows global shares lower – reversal pattern developing.
Global stocks furthered their declines, the Dow Jones and Nasdaq hardest hit overnight as USD strength worries global growth worries continue to hit home. Apple shares tanked after Lumentum Holdings cut its outlook sending tech shares on a solid slide. After a strong day session, the AUS200 was dragged lower throughout the U.S session losing its 61 point rally finishing 10 points in the red. Today we’ve seen a further 30 point decline at midday.
Looking at the AUS200 daily chart it might not be all doom and gloom. We can see a developing inverse head and shoulders pattern. These are normally bullish reversal patterns. One shoulder and the head have formed we’re looking to see if the 2nd shoulder forms. If it forms and price breaks the neckline (5930) we could have a confirmed reversal pattern. But traders, price still has some work to do to pull this off.
On the other hand, if sellers break 5780 a lower high could be confirmed. A rally that fails to break 5930 and begins a new decline could also be seen as a new short-term lower high which could be leading to further continuations lower. Interesting times let’s see where price takes us.
All times are AEDT
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