The rally of the past two week on the ASX took a turn for the worse on Wednesday, on the warning (and official announcement) of Trump's 25% tariff on non-US cars.
This has seen the ASX get caught in the negative sentiment on Wall Street.
The daily chart shows that momentum has turned lower around a resistance cluster, including the December low, 38.2% Fibonacci ration and 20-day EMA. The daily RSI (2) reached a highly overbought level on Wednesday and now sits below 50, and the RSIK (14) has remained beneath 50 to show negative momentum overall.
A bearish divergence also formed on the 4-hour RSI ahead of the selloff.
The bias is for a move down to at least the 7930 area, a break beneath which brings the lows around 7850 into focus.
Matt Simpson, Market Analyst at City Index and Forex.com
This has seen the ASX get caught in the negative sentiment on Wall Street.
The daily chart shows that momentum has turned lower around a resistance cluster, including the December low, 38.2% Fibonacci ration and 20-day EMA. The daily RSI (2) reached a highly overbought level on Wednesday and now sits below 50, and the RSIK (14) has remained beneath 50 to show negative momentum overall.
A bearish divergence also formed on the 4-hour RSI ahead of the selloff.
The bias is for a move down to at least the 7930 area, a break beneath which brings the lows around 7850 into focus.
Matt Simpson, Market Analyst at City Index and Forex.com
Operación cerrada: objetivo alcanzado
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Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.