TASI Technical Overview

TASI Technical Overview

Reversal above 7120.

The long term correction has shown first signs of finding solid ground with the index bouncing above the previous weekly bottom of 6710. However, long and medium term traders should remain outside of the market until the daily timeframe can confirm reversal patterns to the upside. Although the recent rise above 7030 exposed weakness to the medium term trend, it remains Bearish. Only a sustained break above 7120 can activate a daily Bullish reversal and signal the inception of a new medium term Bullish phase. Such move will raise confidence to the Bulls that the long term bottom is on the making and is regarded as a positive sign that will lead the way towards the 7500 area and probably towards fresh highs. Bearish momentum is expected to return as long as the market remains below 7120, with a drop below the key level at 7000 providing early warning.