The ASX 200 Index is headed for another test of support at 4000. Volumes are far lower than the previous week, indicating a scarcity of buyers. Unless there is a significant upsurge on Tuesday, we are likely to see a downward breakout, offering a target of 3500*.
* Target calculation: 4000 – ( 4500 – 4000 ) = 3500
Is 90 points considered a significant upsurge?
I meant … a significant upsurge (of volume). It looks like support will hold for the present, but it’s a bear market and support is likely to fail in the next few weeks.
Regards, Colin