Talking Points:
- AUS 200 Strategy: Prepare for a recovery though volatility remains high
- Momentum upturn provides a good indication
- Triple bottom at 4918.4 limits development on the downside
AUS 200shows early signs of a recovery toward the previous support trend line, at 5008 today. On the downside, a triple bottom and support at 4918 limits lower extensions. Whether the index can return to the area above trend line will be critical to a continued rebound.
The bulls and range traders should closely watch the current upturn in momentum signals, and whether that continues into next week. Topside bias prevails for now.
High volatility dominates regional equity indices prior to U.S. Non-farm Payrolls data today. As such, the AUS 200 may experience more choppy trades before a clear trend emerges. In the meantime, investors can stay put or play short-term opportunities with small target.
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Daily Chart - Created Using FXCM Marketscope
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
