ASX 200 Upswing May Precede Bearish Momentum from Chinese GDP

Talking Points – ASX 200, Risk Trends, 3Q Chinese GDP

  • ASX 200 gains likely to reverse amidst broader downward trend
  • Prices are currently testing February-March 2015 resistance levels
  • Risk trends and China GDP in focus for next steps

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The ASX 200 may soon resume downside momentum, possibly reversing recent gains on developments in the financials and materials sector. Recently, the index succumbed to market-wide risk aversion and extended a decline which started at the end of August, causing it to tumble from an 11-year high of 6373.5 and shed nearly 600 points. The dip was preceded by an Evening Star bearish reversal pattern and confirmed prior negative RSI divergence. The break in trend line support has brought the equity index to levels last seen in April 2018, erasing a six-month rally.

ASX 200 prices are currently eyeing near-term resistance, testing a range last seen from February to March 2015 in the 5920-6050 area. A break through these levels confirmed on a daily

Article source: https://www.dailyfx.com/forex/technical/home/analysis/aus200/2018/10/18/ASX-200-Upswing-May-Precede-Bearish-Momentum-from-Chinese-GDP.html