Talking Points:
- Strategy: Re-consider target of long trades as forewarned
- The path remains clear unto 5293 although new market pressure hints at retracement
- Range 5074-5293 firmly contains prices
The rally in ASX 200 paused with newly emerging downward pressure, as we cautioned in last article. Range 5074-5293 firmly caps short-term movements. Development in momentum signals will provide early signs whether the index will continue to reach up to resistance or retreat lower after today.
Traders with long positions should re-consider their target for profit taking, especially if ASX 200 forms an inside-day today or fails to surpass Friday’s top during this week. Those who stick to prospects of higher moves may take comfort in a firm support level at 5074. Range trade is also possible once momentum builds up stronger.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
