$Australian Stock Market Update $ASX200

$Australian Stock Market Update $ASX200.  This monthly update will analyse the weekly and the daily charts to see the current state of the Australian market.

Australian bank shares sold off in the month of May on the back of a bank levy introduced at the recent Australian Federal Budget. The big 4 banks which are about 25% of the Index, suffered significant sell off. The S&P/ASX 200 Index lost 3.3% in the month of May to finish at 5721.

Below is the weekly chart of the ASX 200 provided by TradingView for this article.

The Australian market has gone through consolidation phase early this year. At the beginning of the May, the market was on an upward trend and just shy of major resistance 5981 but at the end it failed to close above major resistance.

 

 

Below is Daily chart of the ASX 200 provided by TradingView.

Overall the ASX 200 index finished the month at 5721. Now the question is will it go again in consolidation phase or will it try to test minor resistance on 5878? If ASX 200 held price above 5700 in the month of June 2017, then we have high probability to test minor resistance. if it goes below 5700 then it may test 5640 level and may go into consolidation phase.

Here is a list of Australia stocks that are completely bullish:

Ticker Description Price Dir.
    ALL-ASX ARISTOCRAT FPO 21.79 Up
    AWC-ASX ALUMINA FPO 1.93 Up
    AZJ-ASX AURIZON FPO 5.64 Up
    CTD-ASX CORP TRAV FPO 22.62 Up
    MQA-ASX MACQ ATLAS STAPLED 5.93 Up
    NST-ASX NTH STAR FPO 4.9 Up
    QAN-ASX QANTAS FPO 5.07 Up
    SHL-ASX SONIC HLTH FPO 23.73 Up
    SPK-ASX SPARK NZ FPO NZX 3.65 Up
    SYD-ASX SYDAIRPORT FORUS 7.51 Up
    TCL-ASX TRANSURBAN STAPLED 12.48 Up
    TWE-ASX TREA WINE FPO 13.38 Up

 

 

Let’s now look for a trading opportunity.   Since the market has closed below minor resistance, we want to make sure we trade in the direction of the higher time frames.

In using our scanner to analyse the ASX200, we found the following opportunity in our Multiple time frame email alert.

ASX200

Trading Timeframe Bullish Bearish
10 Minutes APN-ASX, APN N&M FPO (4)
CWN-ASX, CROWN FPO (2)
MFG-ASX, MAG FINC FPO (2)
MMS-ASX, MCMILLAN FPO (4)
BKL-ASX, BLACKMORE. FPO (2)
30 Minutes APN-ASX, APN N&M FPO (2)
MFG-ASX, MAG FINC FPO (2)
MMS-ASX, MCMILLAN FPO (2)
BKL-ASX, BLACKMORE. FPO (4)
NXT-ASX, NEXTDC FPO (2)
60 Minutes APN-ASX, APN N&M FPO (2)
CWN-ASX, CROWN FPO (4)
AWC-ASX, ALUMINA FPO (2)
SKC-ASX, SKYCITY FPO NZX (2)
TME-ASX, TRADE ME FPO NZX (4)
IAG-ASX, INSUR.AUST FPO (4)
NXT-ASX, NEXTDC FPO (4)
NVT-ASX, NAVITAS FPO (4)
IPH-ASX, IPHLIMITED FPO (2)
120 Minutes CWN-ASX, CROWN FPO (2)
AWC-ASX, ALUMINA FPO (2)
SKC-ASX, SKYCITY FPO NZX (2)
TME-ASX, TRADE ME FPO NZX (4)
IAG-ASX, INSUR.AUST FPO (4)
MMS-ASX, MCMILLAN FPO (4)
NXT-ASX, NEXTDC FPO (2)
NVT-ASX, NAVITAS FPO (2)
IPH-ASX, IPHLIMITED FPO (2)
240 Minutes CWN-ASX, CROWN FPO (2)
SKC-ASX, SKYCITY FPO NZX (4)
TME-ASX, TRADE ME FPO NZX (2)
IAG-ASX, INSUR.AUST FPO (4)
MMS-ASX, MCMILLAN FPO (4)
NXT-ASX, NEXTDC FPO (2)
IPH-ASX, IPHLIMITED FPO (4)
Daily MFG-ASX, MAG FINC FPO (2)
AWC-ASX, ALUMINA FPO (4)
SKC-ASX, SKYCITY FPO NZX (2)
TME-ASX, TRADE ME FPO NZX (4)
IAG-ASX, INSUR.AUST FPO (2)
BKL-ASX, BLACKMORE. FPO (2)
NVT-ASX, NAVITAS FPO (4)
IPH-ASX, IPHLIMITED FPO (4)

Note: Updated May 31, 2017 10:58:05 PM EST

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About the Author Manesh Patel