Technical Update - ASX 200 trend exhaustion and reversal or continued uptrend?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
ASX 200 seems to be forming a rising wedge like pattern. If ASX closes below support at 6,961 we are likely to see a down wards move to around 6,800 i.e. around the 55 SMA and the 0.50 Fibonacci retracement area. However, there could be down side potential to the 0.764 retracement at 6,579 and the strong support at 6,540. With divergence on RSI this scenario is likely to play out
However, the trend is still up and remains so until the Index closes below 6,961 and will be extended if it closes above 7,138. There is resistance around that level however, with the 200 SMA coming down but an exhaustive spike up to strong resistance around 7,286 should not be ruled out.
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