i) A strong reversal candle out of a fibonacci level/clear resistance level
ii) A double top pattern
iii) A breakoutdown of a clear range
None of these scenarios have occured or been in place thus those looking to short need to wait for these signs.
The SPI has opened at 4802 and thus right into the previous breakdown range at the start of the month. The Cash index is now trading right into the 61.8 Fib retrace and a possible double top pattern is in play on the Cash Index. The resistance levels today in the ASX200 are:
4763- Fridays highs
4765- 61.8 retrace off the high
4780- previous low prior to breakdown
These levels are approximatly 4800/4810 in the SPI.
Plan today:
i) Look for a strong reversal candle out of the res zone to short with a very tight stop
ii) If there is no reversal in the first 30mins, look to buy breakouts from consolidation patterns. Supports at 4775/4780 in the SPI need to hold to keep this scenario intact
ASX200 Cash 15mins:
