Talking Points:
- AUS 200 Strategy: Upside bias persists, provided support trend line is not broken
- Hindrance are flat momentum and failures to break through 5043 resistance
- Trend line support indicates 4950-4990 for next few sessions
AUS 200has not managed to climb above 5043 resistance level although it continues to respect a trend line support – which indicates the range 4950-4990 for next few days. As the gap between these two narrows, it will become clearer whether the index could continue on the recent rebound.
Flat momentum signals do not offer any useful hints other than consolidated price action ahead. The bulls could stay put while closely watch support levels, or prepare to get out after a breach. No downside signal has emerged and the index should remain elevated even if the recovery is disrupted.
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— Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh