ASX 200 Tests a 3-Month High ahead of 50% Fibonacci
- Strategy: Position for a break or failure at 5227 resistance level
- There is limited upside for the upward momentum
- Support levels come in at 5074 then 4918.4
The ASX 200 is testing a 3-month high of 5227 which previously topped the March rally. A breach of this level would open up the venue toward the 50% Fibonacci at 5391.5. Upward momentum persists although there is limited upside with it being in overbought territory.
Investors are waiting for either a clean break of the resistance, or repeated failures followed by a downward retracement. Traders may take action or consider new positions after one of these have occurred. In the meantime, adjustments may be made to support and target levels of the existing trades.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Strategist for DailyFX.com
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