- Aus200 reversed from key resistance level 6715.00
- Likely to fall to 6495.00
Aus200 index earlier reversed down from the key resistance level 6715.00 (which stopped the previous sharp upward impulse wave (i) at the end of November can be seen from the daily Aus200 chart below) – stinging near the upper resistance trendline of the wide up channel from May and the upper daily Bollinger Band. The downward reversal from the resistance level 6715.00 stopped the previous short-term impulse waves (iii) and 3 from the end of October and November respectively.
Given the clear bearish divergence that can be seen on the daily Stochastic indicator – Aus200 is expected to fall further toward the next strong support level 6495.00 (which stopped the previous minor correction (ii) at the end of November)