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27 SEP 2021 – Market Watch
As mentioned in last night’s livestream, the ASX 200 is currently trading in No Man’s Land. This is a zone where it is trading in a band that is bounded by a strong resistance (7400 levels) and strong support (7250 levels).
Usually, when an index or stock is stuck in No Man’s Land, there needs to be a strong catalyst to break either the resistance/support. With the markets still feeling the unease stemming from Evergrande’s missed interest payment last Thursday and the continued lack of clarity on the US Fed’s tapering plans, I fear we might continue to be stuck in this tight band (blue shaded zone) for at least the coming week.
The best-case scenario is if there is a successful push to 7500 levels and beyond. If it happens, I would be more bullish on the market. As it is, I am more trigger happy when deciding to trim positions. If Evergrande somehow presents a huge contagion effect at a global level similar to Lehman Brothers, the ASX 200 will likely drop to possibly even break 7150 levels.
88% of my stocks are green today. How about you?
If you find this market analysis helpful, let me know in the comments. May the markets continue to be with us!
Disclaimer:- I’m a mid-term trader and I hold my stocks between 1-3 months. I’m using Trend Following strategies and my analysis will be from a perspective as a Trend Follower. I’m sharing these analyses for learning purposes and as always, DYOR.
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27 SEP 2021 – Market Watch
As mentioned in last night’s livestream, the ASX 200 is currently trading in No Man’s Land. This is a zone where it is trading in a band that is bounded by a strong resistance (7400 levels) and strong support (7250 levels).
Usually, when an index or stock is stuck in No Man’s Land, there needs to be a strong catalyst to break either the resistance/support. With the markets still feeling the unease stemming from Evergrande’s missed interest payment last Thursday and the continued lack of clarity on the US Fed’s tapering plans, I fear we might continue to be stuck in this tight band (blue shaded zone) for at least the coming week.
The best-case scenario is if there is a successful push to 7500 levels and beyond. If it happens, I would be more bullish on the market. As it is, I am more trigger happy when deciding to trim positions. If Evergrande somehow presents a huge contagion effect at a global level similar to Lehman Brothers, the ASX 200 will likely drop to possibly even break 7150 levels.
88% of my stocks are green today. How about you?
If you find this market analysis helpful, let me know in the comments. May the markets continue to be with us!
Disclaimer:- I’m a mid-term trader and I hold my stocks between 1-3 months. I’m using Trend Following strategies and my analysis will be from a perspective as a Trend Follower. I’m sharing these analyses for learning purposes and as always, DYOR.