Technical Update - ASX 200 range bound. Likely bearish break out could be imminent
Kim Cramer Larsson
Technical Analyst, Saxo Bank
ASX 200 is range bound between 6,633 and 6,828. RSI is showing negative sentiment and has closed below its rising trendline, indicating break out of the range is likely to be to the downside.
With both the 55 and the 100 daily SMA declining currently around the upper trading range put a lid on the upside potential.
An ASX 200 close below 6,633 is likely to fuel a sell-off down the key strong support at around 6,407.
If the key support at 6,407 is broken next support is around 6,198. See weekly chart
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