Talking Points:
- Strategy: Be prepared for lower moves
- Downward momentumhas emerged
- New support level is at 4824
The ASX 200 resumed its decline with a brief break of a previous support level at 4918.4, only to retrace upward late in the Asian session. It remained weak on the downside as downward momentum signals emerged.
The new support levels at 4824 and 4754 will come into focus if a clean break below 4918.4 materializes. This previous support level is critical to investors with both long and short positions. A clean break would signal a continuation of the downtrend, whereas a failure to break and a subsequent reversal would retain ASX in its recent range near January’s and February’s highs.
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Daily Chart – Created Using FXCM Marketscope
— Written by Nathalie Huynh, Strategist for DailyFX.com
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