ASX 200 closed Friday below minor support at around 7,078 and seems destined to drop to strong support at around 6,900. RSI closed below 40 threshold now showing negative sentiment supports the bearish outlook for ASX.
Medium-term ASX 200 seems set for a test of strong support at around 6,900. However, weekly RSI is still positive and needs to close below 40 to turn negative. If it doesn’t 6,900 is likely to be tested and quite possibly broken.
If ASX bounces from 7K and weekly RSI also bounces from 40 threshold a move back to 7,200-7,300 could be seen
A close above 7,370 will reverse the downtrend