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.

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.