S&P/ASX 200 Technical Analysis: Repeated Rejection at Triple Top
- ASX200 Strategy: range trade with the current downturn
- Triple top formed at 5305 as price retracted this week, again
- Crowded resistance region above head: 50% Fibonacci, 76.4% Fibonacci (also a triple top)
The S&P/ASX 200 declined for a second day and currently trades near a daily low at 5192.1. Last week’s swift rise stopped short of 5305 resistance level again – which made it a triple top, after similar halts in August and October.
Above that, 50% Fibonacci of the April-August descent at 5391.5 acts as a firm resistance level where prices also halted on October 23-26 (circled). A successful break through this would lead to a higher triple top and 76.4% Fibonacci at 5723.3 (circled). The bulls should keep these resistance levels in check to possibly adjust their stops and targets.
Range traders may find short-term opportunities during this downturn, with a potential target around 23.6% Fibonacci at 5059.6 or the previous bottom at 4958. Daily momentum signals (shown in lower panel) have also turned down, a sign that this reversal is gathering strength.
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