Day four: our Australia 200 trade

I took profits on Australia 200 long positions yesterday and have moved to a more neutral stance. 

The daily chart still paints a picture that dips in the market will likely be bought, however as you can see from the four-hour chart we are seeing good consolidation around the 5400 level.

It is a big day of earnings today, so this will play a role in the price action, however the actual weightings these stocks have on the ASX 200 is actually fairly low. Keep an eye on China and Japan as this could provide a catalyst either way going into the afternoon. I will continue to look at opportunities here from both the long and short side, but as said for now I am fairly neutral on this market.

Australia 200
Getty Images

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.