Technical Update - ASX 200 not giving up without a fight. But there is strong overhead resistance
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
ASX200 has bounced after the strong rebound in US markets and could see further upside to the 0.618 retracement at 6,860. 55 and 100 SMA’s are dropping and will provide resistance. A pike up to 7K is not unlikely and if ASX 200 closes above 7,015 the Index could climb to 7,250 with resistance at 7,137.
Minor divergence end of September is supporting the rebound.
However, if ASX 200 loses upside momentum and closes below 6,633 bear trend resumes and lows around 6,407 is likely to be tested.
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