Uptrend Still Intact

The first four days of this week reversed by 54.2% the impulsive move of the previous 2 weeks, but ended on a more positive note with candlestick evidence of possible trend reversal (Hirami and Tweezers Bottom). Reversal at this level with low at 4062 would create a second higher trough and would maintain the emerging uptrend initiated on July 4 when the index created a new high after surpassing 4189.

Assuming negative sentiment is continuing to ease, this correction should be a favourable buying opportunity for quality stocks.

Categories: Trading opinion

Tags: ASX 200 charts