For today I am looking at resistance at the 7485 to 7500 level as we have a cluster of items in that region such as the 30 min coral, daily pivot, 200 ema on the 30 min and the 2 hour chart has resistance at 7494. After the fall yesterday the 2 hour chart is now looking bearish and I can see one more leg down, maybe to around the 7420 area before a bit of a rally. I think the market wants to suck in a few more bears before squeezing them out. I mentioned earlier this week that June is typically a weak month and thats certainly been the case so far.
The ASX 200 was weak during their Wednesday session, dropping fairly sharply initially to the key 200 ema on the daily at 5665 before holding steady around that area and working out its next move! We might well have a similar sort of pattern, especially if the bears want to build on yesterdays weakness. The backdrop economically, politically, geopolitically, and sentiment wise is a bit of a bearish one.
Shorting the rallies for the moment is still the best play, and it looks bearish until that previous resistance of 7600 is breached. The 10 day Raff channel is still heading up though so we may well find someone decent support if we were to reach the bottom of that at around the 7385 level (we bounced well from this level on the 15th June).
