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.

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
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.39% Gold: -0.10% Silver: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/VYJLLMIYs1
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.08% 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.03% 🇨🇦CAD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYpt09hgMQ
  • #Copper prices surging above the 2017 high as RSI climbs above 70 for the first time since July Hate to say I told you so......but 👉https://www.dailyfx.com/forex/market_alert/2020/11/17/Copper-Prices-Poised-to-Outperform-on-Chinese-Recovery-Vaccine-News-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CPER #XCUUSD https://t.co/u3ucCf64Vz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.08%, while traders in NZD/USD are at opposite extremes with 74.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mUnqic6URw
  • Australia says it will vigorously fight Chinese wine tariffs - BBG $AUD $XJO
  • South Korea to decide on November 29 whether to raise social distancing rules Ministry says tougher rules could cause side effects - BBG $USDKRW
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/MIgA7RlblS
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/OSOYhffKNr
  • Japan FinMin Aso: Extra budget must also help change post-virus economy No decision on giving cash handouts to single parents Local banks must be strong enough to serve communities and must make own decisions on issues like mergers - BBG $JPY
  • China to impose anti-dumping deposits over Australian wine from Nov 28th - Reminder: Alcoholic beverage exports have over a 30% exposure to China $AUD https://t.co/jLTjF9AV68
ASX 200 Technical Analysis: Rebound Forms New Major Support Line

ASX 200 Technical Analysis: Rebound Forms New Major Support Line

2018-02-16 03:00:00
Daniel Dubrovsky, Analyst
Share:

ASX 200 Technical Notes:

  • ASX 200 prices dropped more than 4.2 percent last week, largest decline since early 2016
  • So far this week, the index has put in a recovery after forming a long-term rising trend line
  • Weekly chart warns against assuming a reversal as key support levels block the way down

Find out what the #1 mistake that traders make is and how you can fix it!

The S&P/ASX 200 fell more than 4.2 percent last week, dropping from a high of 6,060 to close around 5,805 by Friday. Its decline coincided with a market-wide panic selloff that sent other indexes, such as the Nikkei 225, falling to an extent not seen in years. In fact, the last time the Australian market benchmark experienced a selloff of such magnitude was during the first week of 2016. That was more than two years ago.

A recovery has since ensued. The index is at a 10-day high as of Thursday’s close, with prices up as much as 4.5 percent from the February 9th low of 5,668. On that day, prices closed at the bottom of the range containing price action in mid-2017. In addition, that area of support also aligned with the 23.6% Fibonacci retracement (see daily chart below).

From here, a continuation of the bounce would place the 61.8% level at 5,972 as near-term resistance. A break above that would expose the 76.4% Fib at 6,044. On the other hand, if prices reverse lower again, the 38.2% level at 5,856 might stand as immediate support. A fall below that would expose the aforementioned area of support marked by the “range high” on the weekly chart below.

ASX 200 Daily and Weekly Charts: 2016 rising trend line has formed!

ASX 200 Technical Analysis: Rebound Forms New Major Support Line

On the weekly chart, it is too early to say if the ASX 200 is turning lower in a lasting way. The bottom formed in the wake of last week’s selloff seems to have provided the third point in a long-term rising trend line dating back to February 2016. Even if the index resumes its decline in the coming days and weeks, sellers will now have the appearance of a formidable barrier to contend with.

ASX 200 Technical Analysis: Rebound Forms New Major Support Line

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

DISCLOSURES