Talking Points:
- Strategy: Prepare for sideways price action
- Waning downward momentum hints at a consolidation period ahead
- Support level remains at 4918.4
The ASX 200 halted its decline today amid a broad recovery in risk assets. Nevertheless the index still traded below the 5074 resistance level. Support level remains at 4918.4.
Investors with short positions should keep watch of a test of the resistance level, as well as a rebound in momentum signals. Those who look for opportunities to trade the range may find entry points near this resistance, provided the downtrend shows signs to resume.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Strategist for DailyFX.com
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