CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

ASX 200 toys with bearish breakdown, don’t write of the China A50 yet

Article By: ,  Market Analyst
October 31, 2024 2:21 AM

ASX 200 futures (SPI 200) technical analysis:

A potential head and shoulders top is forming on the ASX 200 daily chart. This projects a downside target around 7900 if successful, which is a -3.7% drop from current prices. This also lands within the vicinity of the 200-day average.

 

While this would no doubt wet the appetite of grizzly bears, they should take note of the support levels nearby which could hinder its downside potential. At least initially.

 

A zone between the September high and October low could provide a cushion of support between the 8130/50 area. Prices already seem hesitant to test the zone, so I suspect buyers may step in to initially support the market if tested.

 

It will likely then be down to global macro headwinds as to whether we see a break beneath 8130 to confirm a head and shoulders top. In which case, bears may want to see how prices react around the 8100 and 800 handles to gauge just how bears a H&S top is really is.

 

 

The 4-hour chart shows a solid breakout from a bear flag, which projects a target around a weekly value area high (VAH). Keep in mind the 8130/50 support zone nearby, but as bearish momentum out of the flag was strong, we could see prices dip beneath it.

 

But unless we get a global risk-off trigger, I suspect downside is limited and will also be on guard for a false break of 8100 and subsequent rebound.

 

 

China A50 futures technical analysis:

A quick update with nothing to drastic. A bearish engulfing candle formed yesterday, but I see this as a liquidity sweep before its anticipated rally higher. Yesterday’s selloff does little to shake off the bullishness of the engulfing candle from the 18th October, which rallied from the 13k area. And given the fall from the October high appears to be corrective, relative to the 48% rally from the September low, I continues to suspect the next directional move for the China A50 could be higher. And yesterday’s selloff could be a gift for bulls seeking to improve their reward to risk ratio.

 

As before, a conservative upside target pf 14,000 to 14,220 remains in place. But it could move higher if China’s data improves for another round of stimulus is released that satisfies investors.

 

 

-- Written by Matt Simpson

Follow Matt on Twitter @cLeverEdge

 

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2024