AUS200 Technical Analysis: Consolidate at Resistance Level
- AUS 200 Strategy: Range trade while consolidation goes on
- Momentum reversed from overbought zone, keeping the index in range
- Resistance levels are at 4998 then 5043
AUS 200 falls into a consolidation below firm resistance level at 4998, which is topped by another resistance at 5043. The situation likely prolongs into next week as momentum signals reversed downward from overbought zone, disrupting the earlier rebound.
The index is currently confined in a narrow range of 4859.9-5043. Firm support level at 4754 provides a floor at the downside. A break out of range may not materialise next week while momentum calms. Any clean break at top would bring the ASX 200 back to its September- early January area.
Range trading prevails within this sub-range or between 4754 and 5043. There are not yet signs for a change of direction nor continuation of the rebound. Trend traders may wait out this consolidation.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.