ASX index sheds 70 points (-0.96%) as market bears take the reigns

A quick look at today: ASX retained its composure around the 7,197.4 level after dropping 0.96%.

On the flip side, Australia Retail Sales came out at 0.4%, better than analyst estimates of 0.3% and improving upon the previous reading of 0.2%.

Meanwhile, Australia Interest Rate released yesterday at 04:30 UTC with a figure of 3.85, while the previous figure was 3.6. Australia AIG Manufacturing Index (Apr) released yesterday at 23:00 UTC with a figure of -20.2, while the previous figure was 5.6.

The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Price action pushed below a known Fibonacci support level at 7,210.4 by around 13 points with prices hammering out a 7,160.7 – 7,267.4 range by session close. ASX has just crossed the lower Bollinger Band® at 7,246, indicating further losses could be forthcoming. Despite this, ASX could begin to recover as it approaches significant support, now 0.534 points away from 7,198. Dipping below could be an indication that further losses are ahead.

Several technical indicators are adding weight to the bearish momentum seen today and forecasting ASX to extend its recent losses.

Furthermore, Australia Trade Balance (Mar) is scheduled for tomorrow at 01:30 UTC.

Trading mostly sideways for a month. Approximately 2 months ago, ASX reached a significant high of 7,558 but has struggled to hold onto its gains and declined 3.85% since then.