THE ASX 200 which has underperforms compared to the Dow Jones, has rally in the last month and could break above the 4400 point the coming months. If the inflow of positive news around world continues, including an easing of the worries about the European crisis, and continue recovery of the USA economy, the ASX could reach 5000 by the end of the year.
The 5 year chart show a triple bottom which is a powerful indicator of an up market.
Triple bottom is a bullish reversal pattern that signals a reversal of a downtrend. The above image illustrates the current ASX 200 index triple bottom, which has attempted to fall through the level of support three times. Every time bouncing back to the resistance level. The pattern could be completed if the price move above 4400 and start an uptrend.
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