TASI Technical Overview

TASI Technical Overview

Signs of support.

A higher bottom at 6700 was confirmed on the weekly charts after the market managed to successfully break above the previous top at 7300, opening the way for further gains. That move should have attracted long term traders to activate new longs in the direction of 7650 and 8200. The subsequent corrective move lower is not surprising since the market reached overbought conditions, and traders of the medium term should take advantage of this correction in order to reposition, where entries should be activated only after clear reversal signs. Such signs would only be confirmed By an immediate break above 7370. Otherwise any drop below 7150 could cancel any probable Bullish scenarios and accelerate the declines.