ASX 200 Retreats Quickly To Key Trading Range, May Be Topping Out
ASX 200 Technical Analysis Talking Points:
- The ASX 200 has fallen back into an old trading range
- The bulls don’t seem prepared to push matters for long above it
- Its fate into month-end may yet be most instructive
The ASX 200 has once again shown a clear disinclination to remain long above an important trading band, with the latest foray above even shorter than the first.
That band comes in between 6747.4 and 6616.4. It bounded trade between June 19 and July 22 and provided a springboard for a short-lived subsequent spike up to a record high on July 29.
That spike saw the index spend nine days above the range top. The latest attempt only saw two, and even the second of those, September 23, saw an intraday range which took it back inside. It now looks very much as though the index has made a clear lower high, and that another attempt at the record is some way off if it comes at all.,
It might be rash to be too certain of this, however, given the proximity of month end. If the index doesn’t sink too far from current levels its not impossible that the bulls might try to get things back on track once October is under way.
However, for the moment focus seems to be on the downside. Immediate support probably comes in around 693.7 where the Sydney stock benchmark made a minor top on September 12. Below that the range base will come into focus. That probably has to hold at minimum as a test of bullish resolve at the moment. If it can’t, focus will be on the 6544 region which held in late August but a complete retracement of the climb up from August’s lows would then be very possible.
Keep a close eye on that range base as September fades out. Its fate could hold valuable clues.
ASX 200 Resources for Traders
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--- Written by David Cottle, DailyFX Research
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