ASX 200 Technical Analysis: Index Holding the 5,200 Level
- The ASX 200 is holding the 5,200 support level before the range top at 5,380
- Higher low may suggest that the range top will be retested
- Long term up-trend may be resuming if a break-out finds follow through
The ASX 200 is holding the resistance turned support zone at around the 5,200 level. A hold might imply that a higher low is in place, which may suggest that the range top at the 5,380 will be retested following a move higher earlier this week after the RBA’s decision to cut interest rates.
The price has been trading in a well-defined range for the past nine months, between the 5,380 resistance and the 4,750 support, which coincided with the 0.618 Fib level of the long term up trend from 2012.
A break above the range top at 5,380 might imply that the bulls have taken control, and that the long term up trend is resuming. A break below 5,200 may initially put the focus on the psychological 5,000 level, which coincides with the 0.50 Fib, followed by the range bottom at 4,750 with interim support at 4,900.
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ASX 200 Daily Chart: May 6, 2016
--- Written by Oded Shimoni, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.