The ASX200 has been on the uptrend since the early March 2020. The bulls have been on fire chasing bears all the way from the abyss to the 0.618fib(6128$). But the bears were back in the game since the 0.618fib did not break and they want to play it hard and kick the bulls` butts. Below is the and what we can deduce from it.
- Recent retries by the bulls got stopped out by the 5969 resistance line. you can see 3 indecision candles that started a warning sign showing that bulls dint have enough juice.
- The looks downward which is not a good sign for bulls
- The daily velocity turned negative
- The bulls are still in good shape cause the uptrend line is not broken yet.
Below is what I think would happen if the critical point( confluence uptrend line and 0.5fib) on the chart is broken:
- my first target will be the 50 (around 5600$) where a bounce back can be anticipated
- if first target broken second target is range 5460 to 5500 where broke to the upside and where the 0.382 fib is located.
At the moment, I am not yet but if the uptrend line breaks and bulls dont reclaim it quickly. I may start closing most of my long positions held since late March and wait for clear opportunities before entering the market again.
I will keep you updated if anything changes all along next week.
keep smashing the likes and have profitable trades next week.