Wild night on US markets:- selling down from the sell-zones early on Wednesday, bouncing off support, and then closing above the Weekly 50% level. That price action in the US suugests it's hard to see any further weakness this week, and more likely to head upwards than down....(Full US report later)But is it going to be enough to save our market today from making lower lows on Thursday?
The Weekly range has been modeled for further weakness in the Australian market, with a potential low this week @ 5288.
If that's the expectation to move down towards 5288 this week I would like to think that I can sell the market down to this level with a low risk entry.
My low Risk Entry is using resistance @ 5539…(R87 high @ 5532)
An extremely important level on Thursday is 5476…. (the 5-day lows)
Ideally there could be some buying support to come off this level on Thursday and move up into the resistance zone. This should hopefully provide with a low-risk SHORT entry back down….
If it can then break 5476 then I'm are looking for down move into 5412 and down into the 5-day lows @ 5392...(breakout of the 5-day range into the extended 5-day lows)
5476 as an extremely important support zone, but not a BUY zone because I have modeled further weakness into 5288 this week, and if it's trading below 5476 and hasn't reached resistance then it probably won't.
Note: I had a high probability trade yesterday to move down from 5620 and into 5578.....
5578 was another high probability LONG trade, that failed. However I had modelled that the consolidation under the 5578 yesterday would put selling pressure into the market and push downwards on Wednesday because of the price action in the US.
Today's high probability trade is sell-resistance @ 5539..... if it's trading above it, then the entire set-up has failed.....
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