Expectation that the Australian market is rising upwards from Quarterly lows and swinging back towards the March 50% levels.
This is occuring in most global markets, along with Forex, and hopefully provide some good gains on banking stocks as they swing back towards April 50% levels next month.
Yesterday's expectation was that price would push down from early on Tuesday from 5685 and then head upwards towards 5707...Today will open up around 5707 with the expectation any further gains will be towards 5759.
My levels of interest are 5707 5683 and 5759, all based on the 5-day dynamic ranges, as shown above.
I also subscribe to the view that a higher open today will try and fade the market down early into 5690 or 44 points down.
Two scenarios:- follows the above price action and then heads up into a higher close, as it moves back towards the monthly 50% level:- don't short trade above 5759
2. Moves back under 5685 and continues back into this Week's 50% level @ 5658
The 2nd scenario is still a possibility because of the change of the 3-day cycle yesterday, and with the expectation that the market is moving into a 2-day 'stall' after the change of cycle.
However I favour the first scenario, with my view of resistance around 5734 and down into 5690, after that I don't have a probability pattern other than trying to fade to open, and then trading the 2nd half of the day either way into the close.
Take my profits where I can, and keep stops tight....
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