Stable at 7,365.5 and still trending upwards, Today's session put the brakes on the ongoing uptrend — without a clear direction, ASX closed at 7,365.5 while ranging between 7,356 and 7,374.4.
ASX 200 made an initial break below its 50 day Simple Moving Average at 7,360.6, a possible indication of a forthcoming negative trend. ASX's upper Bollinger Band® is at 7,446, suggesting that a downward move may follow. In contrast, ASX is approaching key support, around 24.1 points away from 7,341.4. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Despite the market lacking direction, technical chart analysis strongly suggests ASX is positioned for a downward move in the near term.
While ASX was pretty flat today, mixed performances were seen elsewhere as after ending today's session at 20,651, Hang Seng lost 282.75 points and is trading around 20,368. Dow Jones is down to 33,900, losing 76.63 points, after ending the previous session around 33,977.
Data to be released tomorrow might clear up some of the market fog as Australia NAB Quarterly Business Confidence scheduled to come out tomorrow at 01:30 UTC.
The index has been trending positively for about a month. This year has been a bright one for ASX after trading as low as 6,434.7 and going on to appreciate by 5.96% year to date.