Short setup ASX200 XJO

XJO (ASX200) some points of potential confluence over the coming days, suggesting a SHORT set-up. Overhead resistance, head and shoulders, against a ticking clock for a daily cycle high to be printed. One final run into a cycle high before rolling over.

Tail risk is high, if going long on the ASX.

1. On a short timeframe, the ASX200 looks to be approaching a resistance level, which started 7 June.

2. We also have the RSI reaching oversold level at the same time, however a steeper push over the coming week would steepen the RSI's reach into deeply oversold territory.

3. This might coincide with a peak in the right shoulder of a possible head and shoulders pattern.

4. It should also be noted that this coincides with the timing band for a daily cycle high and a descent into a daily cycle low around early to mid July. The DCL was set 19 May. 30 June marks day 41 of this daily cycle. With the headwinds I have noted above, it makes it difficult for the ASX200 to breach the Half Cycle High set on 16 June.

So, watch for a breach of the resistance level, perhaps, albeit brief and weak, before it rolls over.