ASX 200 Technical Analysis: 5,100 Level Holds Following “Brexit”
- Index held the 5,100 level following the “Brexit” decision
- A move higher may put the spotlight on the 5,200 level for possible resistance
- A break below 5,100 could potentially expose the 5,000 handle
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Last week, we took a much longer term view of the index in anticipation of the upcoming volatility. As the market might now slowly adjusts to the new reality, we look to return to a slightly shorter term outlook.
The ASX 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.
At this stage, the index seems to have held a short term prior support at 5,100 and a move higher might put the focus on the 5,200 level for possible resistance. A move above that level could expose prior resistance at 5,300 following the long term range top resistance at about 5,380-5,400.
A move below 5,100 might potentially put the focus on possible support at the 5,000 handle, followed by a support area below the 4,900 level to the 4,750 range lows.
ASX 200 Daily Chart: June 27, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
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.