ASX 200 Technical Analysis: Index Faces a Decision at 5,300
- Index held above short term support at 5,300 for the past three days
- Buyers might face a decision whether to mount another breakout attempt
- A move lower may potentially expose the 5,200 support
The ASX 200 is trading above 5,300 (at the time this report was written) after holding the level for the past three days.
The Index has been trading for the past months in a well-defined range 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.
After stalling at 2016 highs, the index failed to hold above the range top but has since seemed to have found interim support at 5,300. The fact that buyers reemerged at 5,300 might imply that a decision could take place at this level on a possible test higher of the 5,380 range top resistance.
A clear break and a hold above 2016 highs at 5,431 might signal that the bulls have taken control, and that the long term up trend is resuming.
A move below 5,300 may expose the 5,200 support zone, from which it appears the last leg to the upside was initiated.
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ASX 200 Daily Chart: June 3, 2016
--- Written by Oded Shimoni, DailyFX Research
To contact Oded Shimoni, e-mail firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.