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Australian Stock Index Technical Analysis - Australian Stock Index Trading: 2020-04-16
ASX 200 Index Technical Analysis Summary
Above 5529.01
Buy Stop
Below 5001.80
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| Donchian Channel | Neutral |
| MA(200) | Sell |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Fibonacci | Sell |
ASX 200 Index Chart Analysis
ASX 200 Index Technical Analysis
On the daily timeframe AU200: D1 is rebounding toward the 200-peiord moving average MA(200) which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 5529.01. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 5001.80. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (5001.80) without reaching the order (5529.01) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Indices - ASX 200 Index
Australia’s consumer confidence deteriorated while trade surplus decline was not as steep as forecast. Will the AU200 rebound continue?
Australia’s economic data in the last couple of weeks didn’t improve much: consumer confidence fell in April whereas balance of trade decline was not as steep as feared. The Westpac Bank Consumer Confidence Index for Australia fell 17.7% in April after 3.8% deterioration in March when a 15% decline was forecast. At the same time business confidence deteriorated much more than expected: the National Bank of Australia business confidence index fell to -66 in March from -4 in February, when a decline to -15 was expected. Weak data are a downside risk for AU200. However against the background of expanding coronavirus infection Australian government announced two additional spending programs to aid its economy. On March 22, a second stimulus package worth $54.2 billion was adopted, followed by third stimulus package of $79 billion on March 30 including a plan to offer businesses payments of $913 every two weeks to cover payrolls. Similar fiscal and monetary stimulus programs of major economies boosted investor confidence which was translated into a rebound in stock markets. Recovering risk appetite is bullish for AU200.
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