Talking Points:
- ASX 200 Strategy: Trade the reversal with caution to Fibonacci
- Downward momentum intensifies after failure to break triple top
- Support levels: 23.6% Fibonacci at 5078, followed by triple bottom at 4918
After failure to break through a triple top and also 50% Fibonacci at 5391, the ASX 200 is falling fast daily as downward momentum builds up. Immediate support level is 23.6% Fibonacci at 5078, below which is a triple bottom at 4918.
Bull traders could follow this reversal toward the triple bottom, especially if 23.6% Fibonacci is broken. Caution should be exercised around this support level to preserve gains in case of heightened volatility. Those who look to buy dips could find opportunities at failure to break, or ahead of triple bottom.
Upside signals earlier in the week have disappeared, giving high probability to further declines in the next few sessions. A resistance level comes at 5300 ahead of the triple top.
Losing Money Trading Forex? This Might Be Why.
--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
