Technical Update - ASX selling pressure easing, but rebound could be short lived
Kim Cramer Larsson
Technical Analyst, Saxo Bank
ASX 200 is bouncing of 0.382 Fibonacci retracement level at around 6,400 moving back to test the 200 weekly SMA which acts as resistance.
The bounce has the potential to move back to test the 0.382 retracement of the June sell-off at around 6,745 before selling is likely to resume. If the rebound runs out of steam and drops below 6,493 the trough at 6,410 is likely to be taken out and ASX 200 Index to resume its bear trend
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