ASX 200 Technical Analysis: Sideways Between Well-Defined Levels
- Index finds resistance around 15,600
- Price trading sideways between 5,500 and 5,570 since the beginning of the month
- 20-day ATR reading at its lowest level since September 2014
If you’re looking for trading ideas, check out our Trading Guides Here
The ASX 200 is trading sideways, between the 5,500 support and the 5,600 resistance area (5,570-5,600).
Volatility has seen a decline to its lowest levels since September 2014 (based on a 20-day ATR study), perhaps due to the “summer lull”.
Against this backdrop, the technical picture appears quite clean, as a break to either side of this trading range could prove influential:
A clear move above 5,600 could indicate the long term uptrend may have resumed and signal further bullish intentions, possibly exposing the 5,700 level for potential resistance initially.
A break below the 5,500 area seems likely to shift focus to possible support around the 5,380-5,400 zone, which might still be seen as corrective within the context of the last months rally higher.
ASX 200 Daily Chart: August 18 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
Follow him on Twitter at @OdedShimoni
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.