Last week I was expecting that if S&P/ASX does not break 4525 then there is a chance that it may drop in later periods of the week but it is good to see that it maintains 4450 levels.
Last week I was talking about a short-term bearish pattern but since it did not test levels around 4600 levels so that option is not very sure. Yesterday’s close was not good; I am not sure whether S&P/ASX will be able to maintain 4450 levels. If it drops from here then 4350 level may act as a good support area though it has initial support level at around 4420 ranges. As I said in past that chance of making medium term bearish pattern is still there if S&P/ASX tests below 4300 level in the downside.
Considering the movements of S&P/ASX in last few months, there is a chance that it may hold in these levels or may test just below 4450 (flat moves) so in that case it may again test higher levels. Though it is not easy to predict for sure but if it fails to test around 4525 in the upside then that may not be good for S&P/ASX and on the other hand 4600 may not be too easy.
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