Last week I was saying that this time S&P/ASX has the stronger chance of crossing 4400 marks. It has achieved its shorter goal of 4500 and now it is due to act on its medium term pattern, if S&P/ASX acts completely on that then we may see it around 4800 in coming future. If we consider normal success rate of that pattern then S&P/ASX will achieve level above 4600.
Last day’s close was good so I am not sure whether it is going to get any major resistance around 4500 but even if it does not, I think it is going to face better resistance at 4600 level. On the other hand if it drops down then 4450 will be its initial support and the better one is at 4400 level.
Last week I was talking about a very short-term bearish pattern, since S&P/ASX has tested the upside so that chance is less now. But the chance of making medium term bearish pattern is still there if S&P/ASX tests below 4300 level in the downside but it may not be a straight one.
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