S&P/ASX 200 index which is called as XJO too is one of the top index traded in Australia Securities Exchange. In ths topic we gonna take a deep look on the chart of S&P/ASX 200 Index, and we would like to explain that what kind of situation we are able to see in the chart of XJO.Lets start the topic and look foward into charts for more detail study.
As we know that due to corona the worldwide economy is struggling right now and and this calamity has put a very massive impact on every financial market. Like forex, stocks, cryptocurrency, many more trading markets are struggling right now and personally we believe that all word economies need time to recover from it becase there is no istant way of recovery and 2020 can be a sideways year for many financial markets instruments. Lets start to talk about the chart here is the study:
As shown above in this Monthly chart of S&P/ASX 200 we gonna do a deep study of Market support and resistance analysis. Market support and resistance analysis is one of the effective way to understand the demand and supply of the market and it does also contain a very good information about the market buyers and sellers approach.
According to the current situation we believe that the rane of price 3750 to 4400 would be a very important range for the price of xjo index. As shown above in the image after a big downfall now market price gonna test all important support areas and 3750 and 4400 are two of them. If we see that price is breaching the area of 4400 which is existing an support right now or acting as an support right now then we can see further more downfall in the xjo index and it can hit the area of price 3750
On the other hand upsie areas those are important resistance areas right now price 6900 to 7200 would play an very important role in future especially when price gonna hit those areas. Because these are the price from where once again, selling may possible in the index of S&P500/ASX 200
The calamity corona is still going on and nobody knows actually right now that what kind of result we gonna see in financial markets, personally our analysis say that we should wait a while and should pay attention on these areas and a big gap can be seen in the middle out there on our index chart. Which would not be that much easier to fill up it may take some time.
Furthermore who are holding it and are waiting for the buying should pay attention on downside strong support resistance areas and we believe that if we got a good response from our support areas (buyers) we may see another upside movement in this index. Covid-19 attack or virus is not a modest type of thing and our financial markets needs some time to sort out the problem as well, because our finacial markets are totally related our economy.