Wednesday, 19 October 2011

ASX 200 set to open higher

Daily candlestick chart shown below, including after hours trading, currently at 4238, compared to Tuesday's ASX close of 4187.

The trend is down, however the market will of course do whatever it likes. It need not continue to roll over downward from the trend line, despite that looking to be the strongest potential. So how does the bullish potential look? If the market shows enough strength to break upward through the down trend line, it will meet resistance at the late August and early September highs around 4350. If it can beat that level, there is stiffer resistance around 4450, formed from the March, June and July lows.