ASX 200: Is the Santa Rally Finally on the Runway?
Did we just see the start of the ‘Santa Rally’ on Australia’s ASX 200? If the daily candle on SPI futures finishes around these levels, the price signal will likely embolden those who have been pining for its arrival.
As things stand, we’re looking at a key reversal with the body and range greater than the candle of 24 hours earlier, pointing to the potential for an extended run higher. RSI (14) has broken its downtrend – hinting at a shift in price momentum – although MACD is yet to confirm the signal.
While the timing of the futures contract roll emphasises the need for risk management, with just a handful of trading days left until Christmas, this has often been a strong seasonal period Australian stocks.
If the price closes above 8310, one setup to consider would be to initiate longs above the level with a stop beneath for protection, targeting the downtrend established from the record highs. A break of that level may open the door for a larger thrust, possibly towards 8420 or 8480.
The price needs to overcome 8353 for the setup to succeed, meaning traders should be on alert for signs of hesitancy from this known reversal level. If the price were to close beneath 8310, the bullish setup would be invalidated.
Good luck!
DS
As things stand, we’re looking at a key reversal with the body and range greater than the candle of 24 hours earlier, pointing to the potential for an extended run higher. RSI (14) has broken its downtrend – hinting at a shift in price momentum – although MACD is yet to confirm the signal.
While the timing of the futures contract roll emphasises the need for risk management, with just a handful of trading days left until Christmas, this has often been a strong seasonal period Australian stocks.
If the price closes above 8310, one setup to consider would be to initiate longs above the level with a stop beneath for protection, targeting the downtrend established from the record highs. A break of that level may open the door for a larger thrust, possibly towards 8420 or 8480.
The price needs to overcome 8353 for the setup to succeed, meaning traders should be on alert for signs of hesitancy from this known reversal level. If the price were to close beneath 8310, the bullish setup would be invalidated.
Good luck!
DS
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