SPASX200 Australia ASX 200 Index Weekly Chart 2-1/2 Year Lows

Aussie stocks are at lows not seen since July 2013. The pink box shows that the downward trend remains strong. Green lines show positive divergence across all indicators so price will want to bounce from here. The chart is not yet updated for today which is at 4910 under the lower standard deviation band (pink). Price will want to bounce to the middle band at a minimum since the lower band is violated.

The 200-week MA is 5103. The 20-week MA, same as middle standard deviation band, is 5183 and dropping fast. The red channel is in play with the top rail near term target at 5100-5120. Mixing the analysis together and sprinkling some magic dust on it, the projection is for price to bounce to the 5080+ level over the next couple-three weeks, to close out the year into early 2016.

The RSI has not reached oversold levels. The monthly chart shows weak and bleak indicators so the expectation is for weakness to resume in the new year. Thus, a bounce to move into the end of the year but Aussie stocks will roll back over to the downside in January-February. The RBA does not plan to add stimulus as per their meeting minutes yesterday, however, it will not be long into the new year before they change their tune.

The blue H&S is in play with neck line at 5050. Price just failed a week ago so a back kiss is a reasonable expectation. If price continues lower as the above analysis suggests (2016), the downside target for the H&S pattern is 4100. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.