Last week I was talking that if S&P/ASX 200 does not able to cross 4400 level then there is a chance that it may create a bearish pattern if it goes down from there. I am still holding that view especially after its move in the last day, market must be looking for more from it.
It will again try to break 4400 level in coming week but if it fails then I will go with the bearish pattern which can take S&P/ASX around 4150 level but this type of pattern is very difficult to work out in shorter time period.
On the other hand if it able to break 4400 level then I have different view on it and the lower lows it is making during past 12-14 months also supports that. In the upside 4500 is the initial resistance and the bigger one is at 4600 level. In the medium term basis it has created a bullish pattern though it is not 100% accurate but if that pattern is true then S&P/ASX may go up to 4800 in coming future. So in coming week emphasis must be given on 4400 level.
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