TASI Technical Overview

TASI Technical Overview

Testing intraday pivot.

Although the weekly charts continue to reveal a Bullish trend, the current correction extended lower and is now testing the previous weekly bottom. Hence long term traders continue to remain neutral while waiting to see whether that level will be strong enough to contain downwards pressure. They shall therefore wait for clear reversal signs above 6710 that can only be materialized with the formation of a daily reversal pattern. While the short term trend remains weak and an immediate break above 7000 is needed to confirm the strength of a further rally initially targeting 7070. However, failure of the market to remain above 6850 will introduce further weakness directing the index towards 6760 before 6710.