ASX 200 Outlook for Week 20-26 April 2015

Is this the beginning of a correction? I think it is.

ASX 200 index has made what it looks like a triple top around 5998 area, and then it failed. To be confirmed though, it  needs to break 5745-5785 level. If so, the correction target would be 5570.

At this level, we expect a strong support given that it is  a 50% Fibonacci retrenchment level – see the daily chart below.

Also the 200 MA level is very close, at approximatelly 5555 – see the red line on the chart.

The weekly candle chart has made an outside bar, so it points to lower levels for next week.