Trading Plan for the days action 27/04/22

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Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.

Global growth, China Covid issues and earnings pressures weighed on US share Indexes as traders went risk off as the Nasdaq fell apart. Prices started the session lower and never looked back as they fell hard into the close. Are we seeing the start of a major risk off event led by Tech?…markets are under pressure on a daily basis as mentioned in a previous post https://tradethestructure.com/2022/04/25/share-markets-come-under-pressure-time-to-assess-risk-and-review-key-index-levels/

The SPI200/ASX200 gave up all of the days gains to grind its way lower into the US close. Prices broke below support and I expect will unwind further as the ASX opens down. The current trend is down and sellers in control so watching to see pullbacks hold until price finds support…looking to 7135 on SPI200 and potentially 7040 on ASX200 (which would mean SPI is down more towards 7015). The DOW fell away from 34104 and never looked back. Price ended down through previous lows at 33690 and is extended into the level. This means the push below could be a flush of lows prior to a rally or we will see a minor retest of the level prior to continuation lower….expecting more risk off and a move down. Hang Seng moved lower after an initial pop higher on the open. The longer term momentum is lower so expecting and rallies to be sold into. Will look for a retest into/above 19715 to hold a lower high for a short setup. Price could drive straight down into 19075 as the Index will gap down on the open below Mondays low. The Nikkei also extended down well below 26440 previous support. Would like to see a flush higher to squeeze out some sellers prior to another move down.

Cryptos again followed the US share market lower. Bitcoin fell from 40600 down to test into support around 37644. Will be watching to see the reaction from buyers today to see if they can start a squeeze on sellers and engineer a move up. Ethereum is much the same plan off support around 2776.

Spot Gold held up off 1893 on the back of some safe haven buying but the bulls do not looking convincing. If a lower high starts to hold then there could be an unwind of the longs above 1893 for a move down to 1875…just depends if the safe haven buyers continue.

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SPI200 Index