Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
S&P ASX 200 uptrend is strong and close to test resistance at 7,288. There is no divergence on RSI which is showing positive sentiment indicating ASX 200 could break above the resistance. If this scenario plays out ASX 200 is set for a strong move towards previous highs around 7,632.
Weekly RSI closed Friday above 60 threshold supporting the bullish view.
If ASX 200 closes below 7,100 and breaks below its short-term rising trendline on the daily chart a drop to around 6,900-6,800 could be seen.