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Day two: Australia 200 trade idea

Traders who take a more aggressive stance on the market would have seen the nice move higher on the hourly chart overnight, with the index hitting a high of 5158, before sellers moved in.

The daily chart however has still not given me a short-term buy signal for the Australia 200yet, and as circled I am waiting for the MACD to move above the signal line (red line of the MACD).

Stochastic indicators have started to move higher, which is a reflection of the index moving into a higher portion of the recent range and has printed a higher high, which is modestly positive.

As I said yesterday, we are now moving into what is traditionally a strong time to be long global equity markets and thus seasonality continues to work.

I feel a buy signal will be provided this week, but I will continue to watch and act accordingly. Stops and limits will be placed when a signal is generated.

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