After ending yesterday at 7,181.3, ASX rallied to 7,246.6 today, hitting its highest point in 5 months. It later lost 14.8 points and closed at 7,231.8.
Today's price action generated a Japanese candlestick pattern showing a Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. Trend and momentum analysis indicates that investors are seeking long positions as ASX price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,273.26, thereby suggesting that ASX is becoming overvalued. Support/Resistance levels obtained from chart analysis indicate that ASX price action is currently oscillating around the 7,234 resistance level with prices moving above and below several times during the session.
Notwithstanding ASX's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
ASX shows positive signs, other assets are also on par: Dow Jones is trading around 34,100 after ending today's session at 33,700 (up 1.18% today). S&P 500 went up by 1.36% today, and closed at 4,003.58. Nasdaq ascends 1.36% today and closed at 11,025.
The index has been trending positively for about a month. Having set a significant high of 7,589.8 5 months ago, ASX is trading 11.6% lower.