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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • 🇦🇺 Balance of Trade (JUN) Actual: A$10.496B Expected: A$10.45B Previous: A$9.269B https://www.dailyfx.com/economic-calendar#2021-08-05
  • 🇦🇺 Balance of Trade (JUN) Actual: A$10.496B Expected: A$10.45B Previous: A$9.681B https://www.dailyfx.com/economic-calendar#2021-08-05
  • The Nasdaq 100 may continue outperforming Dow Jones futures ahead as fears about global growth continue weighing on the 10-year Treasury yield ahead of NFPs. What are the risks? Find out from @ddubrovskyFX here:https://t.co/kADmxIfyHt https://t.co/xZl7hTPoSI
  • Heads Up:🇦🇺 Balance of Trade (JUN) due at 01:30 GMT (15min) Expected: A$10.45B Previous: A$9.681B https://www.dailyfx.com/economic-calendar#2021-08-05
  • S&P 500 Falls on Weaker ADP Jobs Report, Hang Seng to Open Flat https://www.dailyfx.com/forex/market_alert/2021/08/05/SP-500-Falls-on-Weaker-ADP-Jobs-Report-Hang-Seng-to-Open-Flat-.html https://t.co/Pql6w44nPl
  • 🇵🇭 Inflation Rate YoY (JUL) Actual: 4% Expected: 3.9% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2021-08-05
  • Heads Up:🇵🇭 Inflation Rate YoY (JUL) due at 01:00 GMT (15min) Expected: 3.9% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2021-08-05
  • The Australian Dollar may face swelling selling pressure from souring risk appetite over the COVID-19 delta variant and escalating tension with China. Get your $AUD markt update from @ZabelinDimitri here:https://t.co/Vy81GwhvzP https://t.co/U5PgkYUot6
  • (ASEAN Tech) US Dollar Outlook Bearish: Thai Baht Still at Risk as SGD, PHP, IDR Outperform #USD $USDSGD $USDIDR $USDTHB $USDPHP https://www.dailyfx.com/forex/technical/article/special_report/2021/08/05/US-Dollar-Outlook-Bearish-Thai-Baht-Still-at-Risk-as-SGD-PHP-IDR-Outperform.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/hvFwh6eTTg
  • 🇯🇵 Foreign Bond Investment (31/JUL) Actual: ¥225.6B Previous: ¥-1083B https://www.dailyfx.com/economic-calendar#2021-08-04
ASX 200 Technical Analysis: Trapped By Fear Of 6000

ASX 200 Technical Analysis: Trapped By Fear Of 6000

David Cottle, Analyst

Talking Points

  • The ASX 200 looks pretty perky from the chart
  • But a glance at its performance within the current uptrend channel is more sobering
  • Can investors lose their fear of the 6,000 level

Get live coverage of major Asia/Pacific market events with the DailyFX webinars.

A look at the unadorned ASX 200 technical chart must be quite sweet for bulls. After all there’s a strong, enduring uptrend which seems to have picked up the pace a bit since late March.

What’s the problem here? ASX 200, daily chart.

ASX 200 Technical Analysis: Trapped By Fear Of 6000

It’s only when we superimpose the current uptrend channel on the same chart that a less rosy picture emerges.

Bouncing along the bottom.

ASX 200 Technical Analysis: Trapped By Fear Of 6000

What we see here is that the index is perilously close to the bottom of that channel which has marked its long climb up from November’s lows. Indeed, it has not made any serious attempt at the channel top since reaching it back in January.

The index has been in the lower half of the channel since mid-February and has been bumping along the base of it since the end of March.

The problem here could be as simple as a single number. And that number is 6,000.

For all its proximity to current levels, topping that durably seems a sizeable psychological ask for investors. It probably should be. That level hasn’t offered them much beyond the opportunity to take profit since before the financial crisis.

This is not to say however that the index cannot beat 6,000, and even do so durably. But to keep the current uptrend in place investors are going to have to lose their fear of that level’s siren song. Maintenance of the uptrend will soon demand that they do.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES