ASX 200 Remains in Range
- Strategy: Wait out the range-bound period
- Upper and lower boundaries at 5293 and 5074 likely hold firm
- Momentum signals stay mixed
The ASX 200 continued to trade sideways between a support level at 5074 and a resistance level at 5293. Momentum signals and SSI remain mixed with little hint on future direction. Therefore the index may trade in a range for some time.
Range traders could investigate the potential of short position if ASX 200 could reach its upper bound. On the other hand, medium and long term traders should wait out this consolidation until a new direction develops. Mixed momentum signals are the hindrance so far.
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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