XJO (ASX200) some points of potential confluence over the coming days, suggesting a SHORT set-up. Overhead resistance, head and shoulders, against a ticking clock for a daily cycle high to be printed. One final run into a cycle high before rolling over. Tail risk is high, if going long on the ASX.
1. On a short timeframe, the ASX200 looks to be approaching a resistance level, which started 7 June.
2. We also have the RSI reaching oversold level at the same time, however a steeper push over the coming week would steepen the RSI's reach into deeply oversold territory.
3. This might coincide with a peak in the right shoulder of a possible head and shoulders pattern.
4. It should also be noted that this coincides with the timing band for a daily cycle high and a descent into a daily cycle low around early to mid July. The DCL was set 19 May. 30 June marks day 41 of this daily cycle. With the headwinds I have noted above, it makes it difficult for the ASX200 to breach the Half Cycle High set on 16 June.
So, watch for a breach of the resistance level, perhaps, albeit brief and weak, before it rolls over.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.