Monday's Price pattern was what I was looking for to happen on Tuesday this week from a lower Daily open. We have the lower Daily open today, however the price pattern has already completed.
With US markets selling off on Monday, there is the potential that the Australian Market could make a move down towards 6251 and the Quarterly 50% level on any further weakness.
Personally I would rather see the next wave down occurring from December 50% levels, than just selling off this week.
Today:- Risk is going to be 6425
The R87 has a 'gap' open, normally the market will move upwards into the gap. It doesn't favour selling from open, however I do expect that 6425 is going to play a resistance zone today.
It's going to depend on where the market opens...
A lower open on 'gaps' will normally push upwards into the R87 gap or an R44 spiral top.
A higher open and gap closure and the potential for a downtrending day is a possibility as it follows the 5-day dynamic range...
Premium report to follow...
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