Gratitude Thursday, page-3

Below is a weekly chart of the ASX 200.

The ASX continues its 4-month long consolidation pattern, developing a right-shoulder like some unbalanced bodybuilder. Price action generally ranging between under 5700 to 5800 during this period. Weekly momentum remains increasingly bearish as it has since early-Q3.

I still think - after all this time - that major TL resistance is going to win this battle. Favouring the current consolidation pattern as distribution over accumulation as outlined below..

The MACD has been bearish since the down-cross formed during mid-Q2. As the histogram continued its negative expansion, momentum got even more bearish, however has started to contract since early-Q3.  Therefore, weekly momentum is currently less bearish than it had been previously. The Stochastic has been bearish since the down-cross of the 80.0 line during late-Q2. It has continued its bearish descent forming lower-high's along the way. It recently up-crossed a negative tangent line, a small win for the bulls unless it can quickly down-cross again shortly and establishes some bearish separation.