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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
ASX 200 Technical Analysis: Index Eyes 10-Yr Peaks As 6000 Holds

ASX 200 Technical Analysis: Index Eyes 10-Yr Peaks As 6000 Holds

David Cottle, Analyst


What's on this page

Talking Points:

  • The ASX 200 looks relaxed above 6000
  • But it remains overbought, despite recent consolidation
  • Still, there’s plenty of likely support nearby

Join our analysts for live coverage of all major Australian economic data at the DailyFX Webinars

The ASX 200 has broken above the uptrend channel which contained trade between early April and early May. However, its rise seems to have faltered tantalizingly below the ten-year highs briefly scaled in January at 6149 or so.

Australia 200 Daily Chart

Bulls will no doubt take some encouragement from the fact that investors remain happy to hold the index even at these rarified levels .There’s been little sign of overt cashing out and, with the index over the psychologically crucial 6,000 level that in itself is probably a sign of strength.

6000 has long been the point at which rallies falter.

It does seem a little happier above that point at the moment though. The current consolidation- and that’s what it looks like- hasn’t even taken the Sydney stock benchmark close to 6027.1. That would be the first, 23.6% Fibonacci retracement of the rise from April’s lows to current peaks.

Australia 200 Daily Chart

However, despite this apparent composure the ASX 200 still looks quite heavily overbought, even after the past couple of weeks’ lack of major moves. Its Relative Strength Index is still at 73, clearly above the 70 point, which usually sets alarm bells ringing.

It is possible that the index needs to hold on a bit longer up here to let this overbuying settle down. Still, while it remains comfortable so far above that support, there’s no clear reason to go short of this index and those currently long should probably wait now to see if the current consolidation can send the index back to new ten-year highs.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter @DavidCottleFX or use the Comments section below to get in touch!

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