I believe A40 was oversold, but a long margin. And the market tends to oversell, and overbuy - when the trend reverses. While i'm not making a concrete prediction, i have seen similar corrections occur.
Word is Trump wants to 'deal' with China, hence the current rally out of the US. He needs a win and is far too focused on two way trade. In any event, a 'deal' will be good for the two, yes, but better for Australia.
What do you think the next 4-8 weeks holds? I'm betting risk-on, mining, EV's - let us not forget China and their legislating of the industry and A40 seems well placed.
A40 Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held