AUS 200 Technical Analysis: Early Signs of Rebound Emerge
- AUS 200 Strategy: Consider trade on rebound with tight stops for caution
- December’s low of 4859.9 firmed up as support level
- Recent declines halted with upturn in momentum signals
AUS 200 bounced up from December’s low and support level at 4859.9 after two days of sideways trading. An upturn in momentum signals hints at further upside moves in near horizon. Traders may consider trades in anticipation of a rebound, with tight stops at this early stage.
The index gained earlier in the day yet retraced lower levels in the Asian afternoon. If today’s index can sustain above yesterday’s low of 4876, the bounce would be affirmed. Investors with short positions may consider getting out altogether upon a clean break above the previous triple bottom at 4918.4.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh