Technical Update - ASX 200: Top and reversal pattern indicates rebound could be done
Kim Cramer Larsson
Technical Analyst, Saxo Bank
ASX 200 rebounded strongly from support at around 6.400 to just above 6.800 but has now formed a Doji Evening formation indicating top and reversal. To keep upside momentum ASX 200 needs to close above 6,830 for a move to resistance at around 7,015. However, to reverse the down trend picture on medium term ASX must close above 7,138.
RSI rejected at 60 threshold indicating bear trend is likely to resume. A close below 6,699 is likely to fuel a sell-off down to 6.400 short-term.
If ASX closes below 6,400 next support is around 6,200
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