We trust that you had a good week and are well rested for the week ahead.
The ALSI was once again quite volatile last week because of the new political landscape as well as the budget speech which took place on Wednesday last week. On the day of the speech, the price reversed quite convincingly from the downward trend that it was forming. Because of this reversal, the ABC pattern we spoke about last week still hasn't played out. (image 1) It is possible that it will retrace up to the 61,8% level once again and then head back downwards.
Failing that, the price is trading in a short term upward channel which it could continue to do for the rest of the week. We could consider the 55 000 level as a possible resistance level. This is a major psychological level and it would be at the top of the channel it is currently trading in. (image 2)