Technical Update - ASX 200 dropping from key support to key support. 6,400 in sight
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
ASX 200 broke below support at 6,719 in a heavy sell-off finding support at 6,540. But it is most likely not rebound time from here and if it is it is very likely to be a small one.
Bollinger Bands are expanding i.e., trend is in its initial phase and RSI below 40 i.e., negative sentiment
A likely close below support at 6,540 ASX is set to test key support at 6,407. If 6,407 is broken with a close below, ASX 200 will be looking at 6,200-6,000 area.
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