Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
ASX 200 Tests Support Level and Lower Bound

ASX 200 Tests Support Level and Lower Bound

Nathalie Huynh, Contributor


Talking Points:

  • Strategy: Prepare for a break out of bounds, keep watch of stop loss
  • A breach would give leeway to downward reversal
  • Strong downward momentum likely persists

The ASX 200 was fast to approach a support level and lower bound of range at 5074. A break out of bounds would open up the area below that and increase chances of a repeat of the 4754-5074 range.

Downward momentum has built up strongly which may continue until next week. The ASX remains vulnerable on the downside, with only a weak support level at 5035 to hinder lower moves.

Traders with long positions should keep a close watch of support and exercise their stop loss if necessary. The same goes for investors who positioned for range trade. On the other hand, a break out of bounds might lead to a downward reversal and present opportunities to enter short positions.

Need a hand to start trading: Free Guides

Want to read market’s momentum: Speculative Sentiment Index

Losing Money Trading Forex? This Might Be Why.

Daily Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Strategist for

To receive Nathalie’s analysis directly via email, please SIGN UP HERE

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.