Australia retraces to find support

The ASX 200 broke out above its descending trendline — warning that the down-trend was ending — but ran into selling pressure. Bearish divergence on 21-day Twiggs Money Flow confirms the tall shadow on Friday’s candle. Respect of support at 4100 would suggest a primary up-trend, while failure would re-test primary support at 3850.

ASX 200 Index

* Target calculation: 4300 + ( 4300 – 3900 ) = 4700

Support levels are clearer on the weekly chart.

ASX 200 Index Weekly

2 thoughts on “Australia retraces to find support

  1. Gus says:

    I’d like to learn on how did you decide to draw the horizontal line at 4100?

    I often wonder how you draw all of these horizontal lines? What are the rules?

    Thanks

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