ASX 200, H4

On the four-hour chart, at the resistance level of 7269.7, there is a Tweezer Top candlestick analysis pattern, which indicates the activity of the “bears”, as well as a “bearish” Harami pattern and a Hanging Man reversal pattern, signaling that the asset has reached its high. At the moment, the price is correcting from the support level of 6992.1 to the resistance level of 7138.7, which breakout may mean that the “bulls” have seized the initiative and further positive dynamics to 7269.7–7576.5, which, however, is unlikely since the final upward reversal can only be confirmed after the instrument consolidates above 7269.7. Short positions may be opened after consolidation below the support level of 6992.1, which breakdown allows the asset to reach the range of 6808.4–6455.0.

ASX 200 D1

On the daily chart, there is a formation of a Symmetrical Triangle price pattern, from which the price exited, having broken the lower border of the formation around 7084.1. The “bears” prevail in the market, which is confirmed by the formation of reversal patterns around the upper border of the pattern: Hanging Man, Shooting star, and “bearish” Engulfing Pattern. Also, we can see the appearance of a voluminous long “bearish” Marubozu candle. Most likely, the quotes are testing the lower border of the Triangle, correcting to 7138.7, where further decline to 6992.1 and then to the area of 6808.4–6455.0 is expected.

Support and resistance

Support levels: 6992.1, 6808.4, 6655.4, 6455.0.

Resistance levels: 7138.7, 7269.7, 7394.9, 7576.5.

Trading tips

Short positions may be opened below 6992.1 with the targets at 6808.4, 6655.4, and 6455.0. Stop loss — 7046.3. Implementation period: 7 days or more.

Long positions may be opened above 7138.7 with the targets at 7269.7, 7394.9, and 7576.5. Stop loss — 7084.1.