Make or break day for Australia’s ASX 200For all the headlines surrounding the conflict in the Middle East, many markets remain respectful of levels on the charts, providing traders will some form of certainty in an increasingly uncertain world. Australia ASX 200 SPI futures is among that list, kissing uptrend support in overnight trade before bouncing into the close.
But whether the rebound can extend is questionable; we saw a bearish engulfing candle on Tuesday and RSI (14) has diverged from price, signalling another test of the uptrend may prove more fruitful for bears than raids of the past. MACD also looks heavy, suggesting it may soon confirm the signal from RSI.
If we see a bearish break, traders could sell with a stop above the trendline targeting an initial pullback to 8137. Below that, the 50DMA and 7918 are the next levels of note.
Alternatively, if we see another retest and bounce from the uptrend, consider reversing the setup, buying the bounce with a stop below the level for protection. The obvious target would be the record high of 8334 set in late September.
Good luck!
DS
