Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
Markets again pushed higher after Russia avoided a bond default which calmed traders nerves into the weekend. Safe havens eased further and share markets remained risk on as Russia/Ukraine peace talks continue.
Note : We will have to deal with some wide ranges so risk levels may have to be wider than normal.
The SPI200/ASX200 managed to brush aside a disappointing day session and rallied into the weekend to end on highs. I would expect to see some profit taking after the ASX opens and will only be looking to buy after a good flush lower. If bulls are intent on holding prices above the 7334 (ASX200) and 7268 (SPI200) levels, then there may be more upside to come in the near term. The DOW also extended up into the close and has its sights set on pushing up into 35025 resistance. If you are not already long, then wait for a pullback and higher low otherwise waiting to see if price flushes up and then holds a lower high to squeeze out buyers. Hang Seng also extended on recent gains and consolidated those gains into the close. Will be watching for either a flush higher through 22310 and then fade to squeeze out some buyers (as the underlying index will gap up on open), or a flush lower and then buyers to rally into the close. The Nikkei was all one way action up Friday and price ended on highs. The underlying index will gap up on the open so expecting some choppy action initially and some failed follow through. Price could extend up into 27520 so will be looking for some short off the level.
Cryptos also had a good end to the week and are expected to start the new week slightly higher as Bitcoin and Ethereum consolidated the gains in weekend trade. Watching for Bitcoin to hold above 41250 and for a higher low and push up into 43000. Ethereum is also looking okay for an extension to the recent gains and push into 3036 to test resistance.
Spot Gold is loosing any safe haven appeal and edging lower off 1950 as the USD holds highs. With the current momentum lower, we could see a grind into 1886 support. If bulls step in earlier, then I will be watching for a higher low and medium term rally up through 1950.
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Hang Seng Index