AUS 200 Technical Analysis: Retracement after Break of Support
- AUS 200 Strategy: Target a rebound above 4860 though cautious of downside
- Upward momentum stays resilient despite support breaks on Friday
- Support is 4754 Friday’s low. Immediate resistance is triple bottom area at 4863-4918
AUS 200 broke two support levels at 4860 then 4763 during the turmoil late on Friday. Today the index made a retracement toward previous a triple bottom in 4860-4918. Upward momentum hints at resilient buying interests at any dip.
Short-term traders could target a rebound above 4860 provided no change in momentum. It has been painful for the long-term bulls however, with support breaks along the way. Caution is necessary on the downside as moving averages are forming downtrend signal. Upside is capped by 10-day moving average at 4956.
Support level is Friday’s low at 4754. Resistance levels are the triple bottom, followed by 10-day MA. Range trade and short-term trade prevail.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh