Is the ASX200 coming under pressure as sellers ready to jump in

ASX200 Index Review

The ASX200 saw some good selling pressure right from the open yesterday to close down for the session. Price is looking like it is running out of momentum up at resistance around 6200 but we have seen this before only for the market to pause and then rally straight through (5950 Resistance previously). What we have to do now is to plan ahead for what we want to see for further continuation (bulls in control) or a selloff (bears in control). We see the action is pressing up against the 6200 zone and has an anchor to the leg higher at 6030. If price can washout the 6200 zone and then falls back to build a lower high, we expect to see a good move lower. Alternatively, we may see price consolidate just above 6030 and then blast through 6200 on its way to 6350. We feel that the market is setup for bears to pile on news of a trade deal as the run up has factored a lot in already and it may be a ‘buy the rumour, sell the fact’ scenario…we will sell.

Index : ASX200

Current Price : 6142.9