ASX 200 Technical Analysis: Breakout Might Need Support
- ASX 200 moves above the 5,380-5400 long term range top
- 5,500 may be in focus as possible resistance
- Index might need a “higher low” above 5,380-5,400 to signal bulls are back in control
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The ASX 200 has extended gains following a breakout of a long term range.
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 of the long term up trend leg from 2012.
After moving above the range top resistance, the ASX printed new 2016 highs, which might now put the focus on 5,500 for possible resistance.
If the index manages to find support around the 5,380-5,400 area, and form a “higher low”, this could potentially imply that the range “structure” has been broken and that the bulls are back in control.
A failure to hold above 5,380 might put the focus again on the 5,300 figure, which may act as support.
ASX 200 Daily Chart: July 19, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org