Week 22-26 Sept 2014 – ASX 200 Analysis

This strong move down has brought the index to the bottom of the range. According with our ASX 200 analysis, we can’t say the trend has change to a downtrend as yet given the fact that the range is not broken. Having said that, the index has broken the 200 MA last Thursday (18th Sept) at 5418 level which is a bearish sign although it recovered on Friday (19th Sept) above it and closed at 5433.

This move down has been very sharp and needs a consolidation so it could have a pull up of one to four days reaching 0.25 (5449) to 0.33 (5490). The futures points to lower open on Monday at around 5418  and could be support due to the 200MA. Is this going to be the low of the day?