Sorry I've never updated this thread. Simply because the levels I mentioned above( 5353 & 5307) were never broken, therefore I was never looking to get short... Price actually found support and consolidated around 5072.
I'd be wary of getting short now, since overall the price structure looks stronger IMO. It might seem like a good opportunity, however this small correction we've seen might still be short lived. The US markets have felt unusually weak this month, and buyers have been slow to react. However they came in VERY strong again late Friday, and it went back to business as usual- where all the value buyers come in and buy the dips.
Either way i'm closely watching the US markets and basing all my bias on them. I'd like to see markets correct further, however I'm almost expecting buyers to come in strong again next week, or perhaps later in the week.
Here's a fresh look at the XAO, with a standard 200 period MA, and a simply long term trend line(established from the June low of 2012, and touching the June low of 2013)
I pointed out above on the weekly chart how the ASX often gravitates/ moves off 50% retracements. So I've drawn the same 50% retracements onto the daily chart from the most obvious swing low to highs, however I've amended the last anchor point to reflect the latest high.
Although there's been an increase in Volume in this move down, The chart for me really paints a picture of price looking to find support to bounce off, rather than capitulate through. So I wouldn't be looking to get short now until that long term trend line is broken, along with the 200 MA/ 50% retracement etc.
p.s Those blue/ red zones on my chart are volatility based support & resistance.
