It was expected that S&P/ASX will test higher levels if it maintains 4400 levels in early days. Last week I was talking about lower highs though this week S&P/ASX has tried 4450 levels but unless it goes past around 4580 levels, time has not come to say for sure that it is out of that trend.
Last few days were better for S&P/ASX and it has a chance to cross around 4530 level but if it fails to cross around 4580 then there is chance that S&P/ASX may create a medium-term bearish pattern, though it is in early stage. I said that it may cross 4530 level but in early days of the coming week I will not surprise if S&P/ASX tests around 4450 levels again. I will be worried about that medium term bearish pattern when S&P/ASX breaks around 4350 levels convincingly. It is better to wait for full confirmation because there is a chance that it may take the support of 4350 and again test higher levels. In that case it will make a short-term bullish pattern which may take S&P/ASX above 4600 levels.
So for coming week I will be expecting better middle to later days if S&P/ASX maintains 4450 level in early days. On the other hand if it follows the same trend like this week then I will be waiting for breaking around 4580 levels in the upside, therefore it may drop in later days.
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