ASX 200 Technical Analysis: Index Recovering Sharply
- Index held the 5,100 level following the “Brexit” decision
- A break above 5,200 yesterday might put focus on the 5,300 level for possible resistance
- Long term range between 5,380 to 4,750 still in play
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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.
The index broke the 5,200 level yesterday, which might now put the focus on 5,300 for possible resistance. A move above that level could expose the long term range top resistance at about 5,380-5,400.
The ASX might need to break these levels, and the current range “structure”, to signal that the bulls are really back in control.
If the recovery proves to be corrective, a move below 5,200 may imply a continuation of the “Brexit” induces weakness. 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 29, 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.