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April 07, 2023
Trading is currently halted for Good Friday but will resume Tuesday. Meanwhile, here is a recap of yesterday: ASX dipped as low as 7,199.7 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session (7,237.2) with ASX closing the day at 7,219.
While price action maintains a negative bias, Australia Trade Balance (Feb) came out at 13.87 billion, while a consensus of analysts was expecting 11.1 billion.
ASX 200 could begin to recover as it approaches significant support, now 27.63 points away from 7,191.37. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, ASX peaked above its 10 day Simple Moving Average around 7,244.47 — typically an early indicator of a new bullish trend beginning to emerge. ASX's lower Bollinger Band® is at 7,127.65, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. On the other hand, note that a "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. After descending below strong Fibonacci support at 7,215.45, market bears have earmarked 7,109.6 as the next downside target.
Despite suffering losses in today's session, technical analysis is indicating that ASX will undergo a significant bounce in the immediate term.
Other assets are showing positive performances as FTSE goes up 1.03% yesterday and closed at 7,663. KOSPI Composite Index is trading around 2,490.41 after ending yesterday's session at 2,459.23 (up 1.27% today). Notably, Nasdaq rose 0.76% yesterday and closed at 12,000.
Furthermore, Australia CFTC AUD speculative net positions scheduled to come out today at 20:30 UTC.
The index has been trending lower for about 2 months. ASX has recovered 12.47% since descending to a significant low of 6,434.7 around 9 months ago.
