Cracks below 100 and 200 hour MA
The Australia S&P/ASX 200 index is opening sharply lower. It currently trades down -1.6% at 7025.0.
Technically, the price fall has tumbled below its
- 50 hour moving average at 7126.19
- 100 hour moving average and rising trend line at 7126.19, and
- 200 hour moving average at 7051.569
The close risk is now the 200 hour moving average, but traders will likely use the combination of the 100 hour moving average and trend line as the risk for shorts today.
On the downside, the 38.2% retracement of the move up from the 2020 low comes in at 6995.504. That level would be the minimum target to get to and through if the sellers are to probe further to the downside. The 50% retracement comes in 6933.20.
The fear from the spreading of the coronavirus has increased over the weekend after South Korea put the country on high alert after the number of infections searched over 600 with 6 deaths. In Italy the number of infected jumped to above 150 from just 3 before Friday with the number of deaths rising to 3.
