CSE ASI BEARISH SETUPThe monthly chart of the CSE All Share Price Index (ASI) reveals a technically significant scenario: the index is currently testing the upper boundary of a long-term ascending channel while also aligning with the 1.618 Fibonacci extension, both of which signal potential reversal pressure ahead.
Key Observations:
Long-Term Resistance: The price is testing the channel’s upper resistance line near the 17,000 – 17,700 zone, where rejection often occurs historically.
Fibonacci Confluence: The current high coincides with the 1.618 Fibonacci extension, a critical level where long rallies often stall or reverse.
Bearish Candlestick Pattern: The formation of a potential bearish reversal candle near the resistance zone is an early signal of seller interest.
Expected Retracement Levels:
Initial support lies at the 0.382 and 0.5 Fibonacci retracement zones, around 15,000 – 14,000.
Deeper correction could target the 0.618 level (~13,000), which aligns with previous breakout structure and the channel midline.
Conclusion:
The ASI appears overextended after a strong bullish leg and is currently showing signs of exhaustion at the top of a multi-year channel. Unless price breaks above and sustains above 17,700, a correction toward the 13,000–14,000 zone is likely, supported by Fibonacci retracement levels and the channel structure.
This presents a potential medium-term bearish outlook for investors and swing traders, with caution advised around current highs.
