AUS 200 Trades Sideways above Support Level
- Strategy: Prepare for more range-bound movements, be cautious of 5074 support
- Range top and resistance at 5293 is unlikely to be challenged
- Momentum signals stay within range
The ASX 200 continues its sideways trading within the 5074-5293 range. Downward momentum signals show signs of waning. This lackluster of direction may keep the index in a range-bound manner for some time.
Traders with long positions should be very cautious of an immediate support at 5074, since repeated failures to resume higher moves may lead to a downward reversal toward this support. Range traders could wait until prices approach either boundary to consider their range trade.
So long as support level holds, chances of an upturn resumption remain.
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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.