Monday, 11 January 2016

ASX 200 low of 2015 under threat as bearish continuation H & S nears resolution

Daily chart of the ASX 200 cash market through to last Friday illustrates a bearish continuation Head and Shoulders pattern nearing resolution. A break lower would offer a measured target of around 4500. Maybe the H & S labels are over thinking things, could just be a trading range, in either case a break lower will kick off a new leg lower in the ASX 200's ongoing bear market. The cash market low from mid December was 4909.



Next chart is a daily including after hours trade, which closed last week at 4902, very close to the 2015 cash market low.



Monthly chart illustrates my long held Elliott Wave count and a likely scenario for 2016. The H & S measured target of 4500 from the daily chart would merely be the next step lower in an eventual move to below 3000.




No comments:

Post a Comment