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
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.63% 🇦🇺AUD: 0.42% 🇯🇵JPY: 0.15% 🇪🇺EUR: 0.01% 🇨🇭CHF: -0.00% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qb29dNwFFu
  • 🇨🇭 Consumer Confidence (Q3) Actual: 10 Previous: -18 https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇪🇸 Unemployment Change (JUL) Actual: -197.8K Previous: -166.9K https://www.dailyfx.com/economic-calendar#2021-08-03
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.31% US 500: 0.27% France 40: 0.20% FTSE 100: -0.04% Germany 30: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wOyy3Nhn5u
  • Heads Up:🇨🇭 Consumer Confidence (Q3) due at 07:00 GMT (15min) Previous: -7.1 https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇪🇸 Unemployment Change (JUL) due at 07:00 GMT (15min) Previous: -166.9K https://www.dailyfx.com/economic-calendar#2021-08-03
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/JIeP0eAD3i
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/Vc0ZzB38Jq
  • (Market Alert) Australian Dollar Pops on RBA as Taper Plan is Left Alone, Now What? #AUD $AUDUSD #RBA https://www.dailyfx.com/forex/market_alert/2021/08/03/Australian-Dollar-Pops-on-RBA-as-Taper-Plan-is-Left-Alone-Now-What.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/FiZoavEg5e
  • RT @KyleR_IG: "We need to boost confidence. So we should stimulate. But maybe people will know we are trying to boost confidence. And then…
ASX 200 Technical Analysis: Nascent Uptrend Looks Worth Playing

ASX 200 Technical Analysis: Nascent Uptrend Looks Worth Playing

David Cottle, Analyst

ASX 200 Technical Analysis Talking Points:

  • The Australian stock benchmark has bounced at key support
  • Since then it has build a respectable uptrend
  • This looks as though it might stick around

Get live, interactive coverage of all major Australian economic data at the DailyFX Webinars

The ASX 200’s September bounce at key support has been the platform for a minor but notable fightback, which could well see further gains yet.

That bounce took place on September 7. The intraday low of that day was 6095.5, a point which probably not coincidentally is also the second, 38.2% Fibonacci retracement of the rise up from the lows of mid April to the double highs of August and September.

ASX 200 Technical Analysis: Nascent Uptrend Looks Worth Playing

The daily candlestick for that session evinced the small difference between the open and the close, eclipsed by a much broader intraday range, which can be characteristic of a change in sentiment. So it proved with the trading sessions since forming a nascent but already quite well-respected uptrend channel.

ASX 200 Technical Analysis: Nascent Uptrend Looks Worth Playing

Still, the most obvious feature of the chart above remains those ominous four consecutive days of steep falls between September 3 and September 7. The bulls have made reasonable progress toward clawing back the final down down day of that series but, as can be seen from the chart above, they have yet to manage a daily close above that level. They’ll need to put that right soon if they are to build a reasonable base from which to make good the entire fall. However, while the uptrend channel endures they can be seen as still on the case, Moreover its lower bound is some way below the current market, coming in at 6134.1 or so.

The best plan for the moment might be to keep playing this uptrend channel for as long as it endures, targeting an eventual break higher. The index looks by no means overbought, with its relative strength index quite subdued, at 40 or thereabouts.

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.

DISCLOSURES