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200 still nervous at 5500

I posted an Australia 200 chart yesterday showing a possible Bollinger Band “M” reversal or double top style pattern developing in the 4 hour chart

With Thanksgiving in the US last night, upward momentum continues to stall but support has held. However, the chart continues to evolve. There has now been a second peak under the Upper Bollinger Band. This is now looking like a potentially bearish 3 drives to a high pattern.

From here a break of support and the middle Bollinger Band might still set up for a downward correction and a tag of the lower Bollinger Band.

One thing to be cautious of is if the sideways drift continues too long. If that happens, the Upper and Lower Bands will converge and begin to flatten out. That would indicate that the loss of momentum has only produced sideways drift as opposed to a full blown reversal and downward correction. 

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