Declining volume and strong red candles at the recent ASX 200 reversal warn of another test of 4000. Support at 4000 is unlikely to hold unless there is a strong spike in volume, similar to that in early August. Failure would offer a target of 3500*.
* Target calculation: 4000 – ( 4500 -4000 ) = 3500
A longer-term view of the All Ordinaries Index shows declining 13-week Twiggs Money Flow below zero, warning of selling pressure.
* Target calculation: 4000 – ( 4500 – 4000 ) = 3500