Talking Points:
- AUS 200 Strategy: Back to range trade with short-term downside bias
- A return above support trend line is prerequisite to rebound continuation
- Support level at 4754 will likely hold firmly
After repeated failures to break above 5043 resistance level, AUS 200 slipped back to ranging upon a breach of the support trend line that had held out since mid January. Range traders could take advantage of current downside bias although it is unlikely to turn into a downtrend, or lead to a break of 4750 support level.
A return to the area above support trend line is necessary for the recent rebound in AUS to continue. Otherwise, volatile price action may dominate within the range. There is chance for a consolidation tomorrow if the index closes this session near 4918 triple bottom level.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
