My second Finlogix analysis today goes to the AUS200 Index.

Over 2 years ago, I’ve shorted the Australia’s largest market index and ended in profit.

https://www.finlogix.com/analysis/20220118/imminent-aus200-index-bear-cross

Looks like I am going to short it again which I explain the details later.

With the Australian CPI year-over-year data came out lower than expected, it definitely weighed the index down. The moving up seems has ended with the latest all time highs at 7720 as the new resistance.

Assessing AUS200’s high timeframe candles:

Daily Candle: Yesterday close is a Red Spinning Top current is developing a Green Long Upper Shadow

All I can see is buyers’ exhaustion on the Yearly and Monthly candles. That’s it. After making a new all time high, I speculate that the AUS200 index will go sideways.

There are multiple weekly Doji candles hinting that price movement. The three US indices counterparts have also enjoyed the recent bullish moves creating their own ATHs and are ready to go for price correction anytime soon.

The AUS200 index is not exempted of this move.

On the 4H chart, there are lowering highs near the ATH resistance trendline.

I’ve drawn 3 small boxes as the buy side liquidity failing to re-test and break the ATH twice.

My trade plan is actually a simple strategy. I will short the current market price putting the stop loss a little above the ATH resistance while setting the profit level under the lows on the previous swing low found at 7490 as sell side liquidity.

I will not hesitate to proceed shorting the AUS200 level. Based on my calculated analysis, I am willing to go for a 3.18 risk reward setup.

AUS200 Intraday Analysis and Trading Plan For February 29, 2024

Feb 29 2024

Stop Loss -0.83%

Holding time 12hr

7672.06

Entry price

7735.92

Stop loss price

1