Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
ASX 200 Technical Analysis: Rally Continues Post Breakout

ASX 200 Technical Analysis: Rally Continues Post Breakout

Oded Shimoni, Junior Currency Analyst

Share:

Talking Points:

- ASX 200 continues its rally after breaking the 5,380 level

- Index found support around 5,200 and formed a bullish reversal pattern

- Key initial resistance ahead seems to be 5,500

Learn good trading habits with the “Traits of successful traders” series

The ASX 200 upside momentum continues after the index managed to break the 5,380 resistance level.

The index was trading in a well-defined range between the 5,380 resistance and the 4,750 support until July saw a breakout higher, followed by a sharp decline back inside that range.

The index formed a bullish “Morning Star” pattern around the 5,200 support, and found clear conviction since to reclaim the 5,380 resistance, with momentum still looking strong.

A hold above 5,380 seems likely to shift focus for potential initial resistance at 5,500 followed by the 5,570-5,600 zone.

With that said, a failure to hold above 5,380 may be interpreted as a bearish development, and might have eyes on the 5,300 support followed by the last swing low.

ASX 200 Daily Chart: September 26, 2016

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail oshimoni@dailyfx.com

Follow him on Twitter at @OdedShimoni

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES