On 29th Sept AUS200 fell towards 61.8% fibo retracement level and 7094; observing the situation and the bearish momentum being limited by our strong support zone, compelled us on publishing our analysis on the very same day, anticipating that AUS200 will be adapting to bullish reversal from the aforementioned zone with exponential moving average 50 in the daily time frame as its near by targeted destination. According to the elliot wave analysis, the indice seems to have completed its bearish correction of higher degree in the daily time frame and is looking for the support of fundamentals from Reserve Bank of Australia to be pushed higher and set record highs again. Early Wednesday morning in Asia, Reuters came out with the news from the Australian Prudential Regulation Authority (APRA), the Aussie banking regulator, unveiling the efforts to tame housing prices. “Australia's banking regulator on Wednesday tightened restrictions on home lending as rapid loan growth fed surging prices and posed a risk to financial stability,” said Reuters.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

AUS200 (ASX200) is trading below the Senkou Span A and Senkou Span B of the ichimoku cloud - which is acting as a strong resistance near 7416 and 7480, for the confirmation of hawkish trend and the continuation of 5 wave pattern with bullish sentiments, the aforementioned resistances needs to be broken or else the indice will continue its extended consolidative structure between 7416 and 61.8% fibo retracement level. On the bearish side, AUS200 (ASX200)  needs to break below 7094 and 6928, which will turn the exponential moving average 200 in the daily time frame as a bullish retest zone - proceeded by continuation of bearish trend. 

AUS200

Oct 08 2021