News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Point 3 is not talked about enough. The bureaucratic - dare I say, Leviathan - in most universities is resulting in tuition prices skyrocketing without adding clear value to the students. https://t.co/WNZIORrfAk
  • Think #amzn will gap higher on Monday after Black Friday and the giant move to online shopping?
  • The exponential moving average (EMA) is a derivative of the simple moving average (SMA) indicator. Compared to the SMA, the EMA weighs recent price changes more heavily than later changes in price. Learn how to incorporate the EMA into your strategy here: https://t.co/w48c0xJXSX https://t.co/xFmhA7ZHqU
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:https://t.co/8hAhguZcEA https://t.co/kwtatozp3z
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/Yg6ecRZZNr https://t.co/9SdceNYUEK
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/imv2PnapzH
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/mmldxxEtsc
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/reMoYpqkQO
ASX Technical Analysis: Range Base Under More Pressure Than Ever

ASX Technical Analysis: Range Base Under More Pressure Than Ever

2017-09-12 01:56:00
David Cottle, Analyst
Share:

Talking Points:

  • The ASX 200 has offered investors a scant, 160-point range since mid-May
  • However the last few trading sessons have seen it confined to the lower half of the range
  • Its base is under more pressure than it has been for months.

New to the trading world? Our beginners’ guide is here to help

Take a look at the ASX 200’s daily chart and at face value you’d be justified in thinking, “well, there’s nothing much to see here.”

For the index remains trapped within the tight, 160-point range which has somewhat bizarrely contained all the action on a daily-close basis since mid-May. Indeed, if you strip out the closing highs of mid-June (which at this distance I think we can) the range narrows even further.

ASX Technical Analysis: Range Base Under More Pressure Than Ever

A look at the above suggests that the shaded area remains all that traders have to play with, and that they should plan their strategies accordingly. That means buying around current levels and bailing as close to 5800 as their constitutions will allow.

However, if we take a closer look at more recent events, then things take a more sinister turn, at least for bulls.

September 1’s lower high of 5751 had not been confirmed when I last looked at the ASX. It has been now.

Moreover, although the current revival of risk appetite has seen the index gain, it still looks to be moving into a lower “sub range” of the old band, with its top around current levels.

ASX Technical Analysis: Range Base Under More Pressure Than Ever

While momentum indicators are giving little away – with the index neither overbought of oversold to any significant degree – it looks as though a tentative “pennant” might be forming on the charts. If sothis is what’s known in technical circles as a continuation pattern which means that, once it resolves, market action will spring back to the status quo ante. That would see the index take a leg lower.

ASX Technical Analysis: Range Base Under More Pressure Than Ever

From current levels that could be very significant. Watch the current range bottom; if the pennant scenario plays out, it could be about to give at last.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES