S&P/ASX 200 has faced support at 4000–4050 level and it bounced back from that level but considering its over-sold position I was expecting that it may test around 4200–4250 level but it got the resistance of 4100 level which I mentioned in last week.
Last few day’s closings were not good and technical indicators are also not showing any specific trend. So still I cannot say confidently that it will not again try to break 4000–4050 level to go around 3850–3900 level which I mentioned in last week about its bearish pattern.
But if it maintains 4000–4050 level and able to break 4100–4150 level convincingly then there is a good chance that it may test 4200–4250 level. On the other hand if it drops in the early days of the coming week then 4050– 4100 will be the resistance level in the upside. So emphasis should be given at 4100–4150 level in the upside and 4000–4050 level in the downside.
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