$ASX200 = Long Term Forecast – 2022 = 30.12.2021 $ASX #ASX

This ASX study opens a series of Yearly Forecasts for major world indices, cryptocurrencies, metals, and other influential stocks.

I am wishing all my readers and subscribers a very prosperous and profitable New Year! I hope everyone benefits greatly from ASX in 2022.

The study covers the perspectives of candlesticks and Elliott Waves.


ASX finished the year with a great bullish candle formation that fully cancelled the bearish odds of year 2020. The most important message is that 2022 should have a green candle.

The monthly candle is bullish Engulfing that is typically followed by at least one month of higher prices.

The weekly candle, given the context of indicators and moving averages, is an indecisive doji that will be likely resolved upwards.

The last day of the year disappointed. However, the price managed to stop just 50 pips above 8 EMA line. The drop was not also supported well by volume and other indicators.
From the candles perspective – it is an incomplete Tower Top that tends to resolve upwards.

Overall for candles: While all longer term frames are strongly bullish, ASX might experience certain softness short term.


This is a forecast for 2022. ASX is expected to grow 15-22% in the next 12 months.

Some technical considerations and assumptions:

  1. The long term bottom was in March 2020.
  2. The high in August was likely the top of wave 3 as supported by certain indicators.
  3. The August-November formation could be wave 4 or could be an extension of wave 3 (alt count).
  4. The targets were measured by four methods:
    • – Wave 5 = Wave 1, the most typical Fibonacci ratio for the motive waves.
      Target – $8900 (blue Fibs);
    • Golden Section through the tops of waves 1 and 4.
      Target – $8800 (golden Fibs);
    • The length of wave 3/5 – 1.618 of wave 1.
      Target – $8600 (green Fibs);
    • Classical pattern – Pennant.
      Target – $9100.
  5. Target area – $8600-9100 (blue rectangle), or 15-22% from the 2021 closing price of $7439.5.
    Most probable target – $8800 by Golden Section.
  6. The target can be reached (per channel) as early as July 2022, but the wave could also extend till May 2023. Most probable – December 2022.

Happy New Year and Good Luck!

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