Technicals – ASX200 index - risk remains for a renewed sell off

Angela Mangan

The ASX200 index generated a technical sell signal at 5229 on 2/11/16, as detailed in recent Wire(VIEW LINK). Yesterday it reached an intra-day low of 5052 (versus the nominated downside technical target located at 5050). The expected rebound today on the ASX200 index may continue in the short-term but is unlikely to be sustained. The risk and expectation is for a renewed sell off to occur in the ASX200 index. If technical base forming is to ultimately occur, a key part of this process is the requirement for a renewed pullback ( after the initial rally off the recent lows). A period of consolidation is required above the recent lows.


Comments

Please sign in to comment on this wire.