ASX to new highs, or fakeout in the making?
The ASX 200 futures chart reached a record high on Wednesday, and momentarily traded above 8400. Yet repeatedly we see the market hold above this level (also note the weekly R3 pivot is within the area).
A bearish divergence is forming on the 1-hour chart, so the bias is for a false break of the highs and retracement lower ahead of its next sustained record high.
Bears could seek a move towards the 20-hour or 50-hour EMA, or bulls could wait for such a level to be respected as support before rejoining the bullish trend.
*Take note that AU employment data is released in just over 1hr*
MS
A bearish divergence is forming on the 1-hour chart, so the bias is for a false break of the highs and retracement lower ahead of its next sustained record high.
Bears could seek a move towards the 20-hour or 50-hour EMA, or bulls could wait for such a level to be respected as support before rejoining the bullish trend.
*Take note that AU employment data is released in just over 1hr*
MS
Note
Fakeout is was indeed.
MS
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