XJO looking delicately poised...

13 thg 3, 2021

The ASX 200 index is looking very delicately poised. Clearly there is an ascending wedge forming but it is unclear if price will break to the downside or upside and when? Price is currently sitting on a support level from December last year. MACD has just crossed to the downside but RSI not showing overbought signals yet. Fundamentals are going to play a big part over the next few weeks as rising bond yields are spreading fear across the global markets and future inflation fears are rearing their head. Will Biden's stimulus package provide the booster shot needed in the tech stocks or have recent earning highlighted the extent of the over valuation in the markets. Next week is going to be a critical week. Looking for price to stay above 6766 and some signals of continuation to the upside. Hold on for a big week.