The ASX 200 has also penetrated its descending trendline, suggesting the correction is over. Breakout above 4850 would signal a test of 5250. Bullish divergence on 21-day Twiggs Money Flow indicates buying pressure. Target for a break above 5000 would be 5850* to 6000. Respect of 4850/4900 is unlikely but would warn of another test of support at 4650.
* Target calculation: 5250 + ( 5250 – 4650 ) = 5850
How has the downward trend line been drawn? Looks a bit arbitrary?
Would love to understand why you picked the red candle in the lower right part of the chart
Trendline was drawn at 20 June peak but needed third point for confirmation. Third peak was 28 June red candle. Line drawn after next candle on July 1st.
Thanks Colin
The middle peak is a little further away from the line than I would like, but they do not have to touch the line — just be reasonably close.