Technical Update - Uptrend in ASX 200 continues but is soon to meet resistance
Kim Cramer Larsson
Technical Analyst, Saxo Bank
S&P ASX 200 seems to continue its uptrend taking out resistance at around 6,930 and with a higher close Friday. Next resistance at the 0.764 retracement at 7,079 and the 100 SMA. 200 SMA near by and coming down will provide resistance but the key resistance is at 7,288.
The uptrend is steep illustrated by the steep rising channel. A break of the lower rising trendline would be first warning of a correction or trend exhaustion. There is minor divergence on RSI but if we see a higher value in the ASX 200 RSI is likely to back that up with a higher value i.e. trade out that divergence.
If the Index break below lower rising trend and closes below 6,918 a correction down to around 6,800-6,763 is likely .
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