ASX 200 Technical Analysis: 6th Attempt to Test Firm Resistance
- ASX200 Strategy: Range trades prevail given strong resistance/support levels
- Tight resistance ahead: 5,305 multi-top since August, 50% Fibonacci at 5,391.5
- Upward momentum may transform into a consolidation at repeated failures
The ASX200 is testing a firm resistance level at 5,305 for the 6th time since August. Clear upward momentum warrants repeated attempts in future, should it fail again this time. The index remains largely range-bound with firm resistance and support levels to guide short-term trading.
First capped daily prices on August 27 & 28, this firm resistance has thwarted four more attempts to break it on October 9, October 16, November 4, November 20 & 23. The closest the ASX 200 has come to a clean breach of resistance is November 4 with a brief jump above it.
Consolidation may emerge under this resistance level if it is not broken soon. Range traders should be mindful of both this level and the 50% Fibonacci at 5,391.5 above it, for possible signs of a reversal. A strong upward bias in momentum signals effectively rule out any lower extensions in the near term.
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