Hi all, the AUS200 CFD began the week undecidedly,...

Hi all, the AUS200 CFD began the week undecidedly, consolidating for the majority Monday's Sydney session before finding its mojo around 3pm and sprinting higher on its way to a three and a half day bender that came crashing back to earth around mid-day Thursday before capitulation unfolded on Friday, very interesting price action indeed.

Price reached and closed beyond the 50% fib retracement of the big swing down on a daily candle closing basis for two consecutive days before the sell of arrived.

The monthly candle closed the month above some significant resistance but was unable to close above the 50% retracement level. Price still remains underneath the 12 month moving averages and monthly directional line but continues moving higher towards them.

The weekly candle put in a higher high, higher low, higher close retrospective to the previous week, has closed above the quarterly moving averages and weekly directional line. Psar is bullish underneath price.

On the daily chart you can clearly see the Monday breakout and three-and-a-half-day rally before the sell off. The Friday candle close turned the daily directional line bear, this is quite evident on all intra day charts but not visible here. However, price has closed on top of the previous resistance zone which should now hold up as support. Price has some work to do in order to keep the bullish counter trend rally going.

While price on the daily chart remains above the weekly directional line, quarterly moving averages and psar, the short and intermediate term bullish bias remains intact.

I foresee some to and fro consolidation taking place over the next few days before price decides its next move, which could honestly be in either direction? There are plenty of support zones as seen in yellow underneath price to ensure any bear market rallies will be short lived.

All for now, good luck and happy trading to all…