TASI Technical Overview

TASI Technical Overview

Probable short term reversal.

Although the weekly charts continue to reveal a strong Bullish trend, the recent drop below 7050 has significantly weakened the medium term picture and send the long term correction deeper. Long term traders continue to remain neutral while waiting for that correction to end near a strong demand area before attempting to acquire any new positions. However in the short term, the market is actively testing an important resistance level at 7020. Further Bullish pressure above that level would signal an intraday reversal pattern and indicate to a further rally targeting 7070 and 7150. Failure to convincingly break above that level would indicate weakness and reinstate Bearish pressure to a retest of 6930, below which odds for a retest of 6765 August low would be strengthened.