Tuesday, 26 June 2012

ASX 200 closes below the trend line drawn from 2009 low

The daily candlestick chart of the past 12 months trade shows that the ASX 200 today closed below the trend line drawn from the 2009 low. For a longer term perspective, have a look at yesterday's post. A close below 4000 could open the floodgates, but it's foolish to count chickens before they are hatched, and better to keep an eye on levels that would disprove your primary scenario. As I have discussed many times in recent weeks, only a move above 4200 would suspend the near term bearish forecast, and delay a move toward the medium term target of low 3000s.