The ASX200 Rebound Could Appeal To Bears | JBH, GXY
City Index | Oct 08, 2019 08:49
The ASX 200 is on track for its third consecutive bullish session. Yet this may not be enough to keep bears at bay, given the depth of the prior decline.
We remain bearish below 6,600, the 50-day eMA sits between the 50% and 61.8% retracement levels to provide an additional zone of resistance.
JB Hi-Fi (ASX:JBH) has been a strong performer this year, rallying nearly 75% since January’s low. Prior resistance around 33024 has been confirmed as support and acted as a springboard ahead of its breakout from a bull flag. It closed to record highs so there is potential for over-extension over the near-term, but it is difficult to argue with the bullish trend.
Get The App
Galaxy Resources (ASX:GXY) has been the bearish trend that has kept on giving. The market topped in January 2018 and has been in a steep decline ever since. Now trading at its lowest level since March 2016, we’re seeing the potential for a short and for it to head towards the Feb 2016 low.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.