I issued this Alert on August 19 based on bearish weekly and monthly candle formations. This is how the chart looks now and I am not convinced that ASX is going to stop after reaching my first target.
The original Alert below:
ASX printed a Spinning Top in Q3 (not shown). The candle requires confirmation.
A very strong bearish Engulfing. Not much to think – at least one month will be down, almost guaranteed.
A strong bearish continuation candle, fully wrapping the previous bullish Hammer. Below 8 EMA. Going lower.
A bearish continuation candle. The break below 100 MA confirmed.
Summary: I am not sure I remember when quarterly/monthly/weekly/daily candles were so much aligned. The path seems to be clear. Harbinger?
Blue Count (primary)
Main assumption: the current wave is wave 4 of the wave of higher degree that started in March 2020.
Minimal retrace $7188 is achieved.
Possible targets: $6700-6900.
If ASX falls below $6700, the red count would become primary.
Main assumption: the correction that started in March 2020 continues.
Possible targets: $5100-5650