ASX 200 Technical Analysis: Index Held Below 5,300
- Index held just below the 5,300 level after recovering sharply
- A break above 5,300 might put focus on a long term range top resistance
- ATR at the highest level since February
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The ASX 200 is seeing a slight halt to its upward momentum after the index recovered sharply from support at 5,100.
The index has seen volatility pick up after the “Brexit” decision, as ATR readings indicate the most volatile market since February. The sharp rally from the 5,100 level seemed to have eased slightly today, just below the 5,300 resistance.
A move above that level could expose the long term range top resistance at about 5,380-5,400.
The index might need to break these levels, and the current range “structure”, to signal that the bulls are really back in control.
If the easing in momentum proves to be enough for sellers to come into the market, focus may be turned to the 5,200 level for possible support, followed by 5,100 and the 5,000 handle. A possible support area might sit below the 4,900 level to the 4,750 range lows.
ASX 200 Daily Chart: July 4, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.