ASX 200, H4

The four-hour chart shows the formation of a "bearish" Flag model, the lower limit of which was overcome by quotes near the resistance level of 6985.8, and then they headed downwards with a target of 6727.2. The negative dynamics are accompanied by the appearance of "bearish" Marubozu candlestick analysis patterns in the range of 6985.8–6936.2, and the index is currently trading around the support line of 6886.7, forming a series of "bullish" Hammer reversal patterns and correcting upward to 6985.8 as part of a further decline asset. Overcoming the key support level of 6886.7 and consolidation of the price below it will allow the "bears" to head to the area of 6727.2–6558.3, and a breakdown of 6985.8 will become a catalyst for movement to the levels of 7139.4–7305.8.

ASX 200, D1

On the daily chart, one can see the formation of a "bearish" Pennant pattern, from which the price exited downwards in the area of the resistance level of 6985.8, which also confirms the appearance of the Three Black Crows continuation candlestick figure, during the construction of which the instrument dropped to the support level of 6886.7. At the moment, the "bulls" are trying to hold this level, but the pressure from sellers is noticeably stronger, so breaking the key level of 6886.7 will become a catalyst for opening short positions with targets of 6727.2–6558.3.

Support and resistance

Support levels: 6886.7, 6727.2, 6558.3.

Resistance levels: 6985.8, 7139.4, 7305.8.

Trading tips

Short positions can be opened below the level of 6886.7 with targets at 6727.2, 6558.3. Stop-loss — 6936.2. Implementation time: 7 days and more.

Long positions can be opened above 6985.8 with targets at 7139.4, 7305.8. Stop-loss — 6936.2.