The AUS200 fails to form a bullish monthly stick sandwich pattern after a strong rejection at the 7900 level this May.

First analysis today goes to the AUS200 index.

Both my March 13 short and May 14 long trade plans have exited in losses.

Read the full recap of these trades here:

https://www.finlogix.com/analysis/20240313/aus200-intraday-analysis-and-trading-plan-for-march-13-2024

https://www.finlogix.com/analysis/20240514/aus200-intraday-analysis-and-trading-plan-for-may-14-2024

There are no further Australian high impact economic reports left this week while there are 4 in the US starting tonight.

Re-assessing AUS200’s high timeframe candles:

Yearly Candle: Last check is a Green Long-Legged Spinning Top now a Green Long-Legged Semi-Doji

Monthly Candle: Last check is a Green Body with a Longer Head Wick now a Green Long Upper Shadow

Weekly Candle: Previous close is a Red Body with a Longer Tail Wick current is a Red Body with Equal Wicks

Daily Candle: Previous close is a Red Body with a Short Tail Wick current is a Green Body with a Longer Tail Wick

The AUS200 index has given up its May gains for more than 60%!

The index is now in a validated downtrend and continues to seek lower.

In yesterday’s price action, the AUS200 bears have confirmed the 7700 levels into a resistance!

This level now is a flipped S/R area after the 1st corrective up wave reached its peak on Tuesday facing the 4H 50-SMA as a wall and price has aggressively gone down.

Currently, the 2nd corrective up wave shown above is developing, trying its way towards the 7700 levels again but if heavy selling resumes, the awaiting April-May support trendline is targeted next threatening for a breakdown.

However, if bulls sustain the upcoming sell-off, the bullish monthly FVG might not be challenged and price reverses upwards towards the March-April resistance trendline.

I’m betting for a further price free fall once the 4H death cross completes.

This 2nd corrective up is a dead cat bounce rally and I’m shorting this structure with a quick stop loss at the flipped S/R level while targeting the April-May support trendline downward trajectory for the take profit.

I might get stopped out easily for some minor buy side liquidation before the next huge drop but I’m willing to take the risk.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

AUS200 Intraday Analysis and Trading Plan For May 30, 2024

May 30 2024

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