ASX 200 Halts Decline as Risk Assets Recover
- 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.
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 DailyFX.com
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.