Tuesday, 29 September 2015

ASX 200 daily chart testing short term trend channel support

Daily chart including all sessions trade, shows the ASX 200 testing and rallying (so far) from short term trend channel support. I would not be surprised to see a rally back to the top of the channel, and then up through the top of the channel toward higher levels. Everyone was watching for a break lower from the triangle, mysteriously named a wedge by many, and we got it today, but the almost universal attention to that pattern weakens any potential for follow through on the break. The big picture (last posted a week ago) remains bearish, and the market could rally as much as 600 points from current levels without threatening the big picture bearish case.