MVB ETF may present a diversified approach to analysing the Australian Banks as whole and that of the Financials Sector XFJ. A lot depends on this sector/banks as to how our broader market XAO performs.
For all relevant information about this ETF, please visit Van Eck Australia Website.
Spread between bid and ask, unlike the individual banks may also worth looking into.
Within a MAJOR DOWN TREND a RANGEBOUND ( Sideways/ Trading Range) PRICE ACTION behaviour in the medium term may best describe this ETF in technical terms. My personal stance is that we are in an ACCUMULATION which is yet to be confirmed. Even if it is not, the range of this sideways price action behaviour may provide some opportunities for swing traders taking a short term view with their analysis. For this , DAILY/WEEKLY CHARTS may come into play.
I have marked the lows made during the course of the year which gives us a SUPPORT ZONE of $21.70 – $22.50. We are currently testing (SECONDARY TEST/RETEST) this zone which has held in the past. I am looking for a DAILY PIVOT POINT SHORT TERM BULLISH REVERSAL for a POTENTIAL LONG ENTRY over the coming days, which may represent a low risk entry. My system allows me to utilise this type of entries which does not come often must also be said.
On the UPSIDE we have a clear RESISTANCE ZONE of $25 – 25.70 which is also worth noting. A decent size trading range in other words in my book.
Potential majority coalition government, which looks more likely than not, diminishing the fear of a Royal Commission into the banks may suggest a potential retest of the resistance zone over the months ahead, if we see a successful support test at current levels off course.
Monthly MVB Chart below showing anticipated future price action behaviour. Question is will it unfold that way ?
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