The ASX 200 encountered selling pressure at 4350, as indicated by the tall shadow (or “wick”) on Monday’s candle. Bearish divergence on 21-day Twiggs Money Flow also indicates medium-term selling pressure. Failure of support at 4150 would signal another test of primary support at 3850. Upward breakout is less likely but would offer a target of 4850*.
* Target calculation: 4350 + ( 4350 – 3850 ) = 4850