Though S&P/ASX has acted to some extent on its bullish pattern but it did not able to show much movement around 4600 level. Now it is again testing 4500, what I feel that if it does not able to break around 4525 in coming week then there is a chance that it may drop in later periods of the week.
Considering its short-term over-sold position I think it may again try to test 4600 level but if it does not able to break that then there is also a chance that S&P/ASX may create a short-term bearish pattern, though this is a very early call because that pattern is just in its early days.
S&P/ASX has the chance of avoiding future drops only by breaking around 4600 levels. So if it able to break 4525 in early to middle days then that may act as a good sign for it.
On the other hand if S&P/ASX drops down from 4450 level then it will get support at 4400 level. 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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