Today's Saxo Market Call
Today's Market Quick Take
from the Saxo Strategy Team
ASX 200 uptrend is slowing as the Index is nearing strong resistance area around 7,592-7,625. There is minor divergence on RSI indicating a weakening of the uptrend. A correction could be seen before ASX 200 reaches the resistance area. A correction that could take ASX 200 down to around 7,300-7,250. 21 and 55 SMA’s will provide some support limiting the correction but a dip down to support at 7,167 should not be ruled out.
However, the uptrend is still intact and ASX could move higher before a correction. Divergence on RSI is just a warning of a looming trend exhaustion and reversal behaviour.