Australia 200 – Wednesday 24 June 2015
In the last couple of weeks the ASX200 index has slowly but surely crept higher and reached a two week high above 5650 whilst enjoying solid support from 5500. Even during this period it fell sharply yet enjoyed solid support from 5500. It is now looking to maintain the break above the key 5650 level. It was only a few weeks ago that the medium term down trend in the ASX 200 had reversed however just as quickly it has taken out the lows around 5550 and moved lower to its lowest levels in five months. If the support at 5500 gives way, then lower levels should be expected. The 5500 level has been solid in the last week or so and provided reasonable support to the index which has allowed it to consolidate a little around this level.
A little higher up at 5800, this level remains large and continues to apply downwards pressure on the index, as this has been a significant level for the index throughout this year. It will be interesting to see whether the index can garner enough support from the short term support level around 5500 which has propped the index up over the last week or so. Back in early May the Australia 200 index declined sharply from highs around the key 6000 level and whilst it paused a little around 5800 and enjoyed some support, it continued to decline down to a three month low around 5550.
Even if it was able to rally higher and move back through the key 5800 level, the index will rejoin the congestion range between 5800 and 6000 and likely find it difficult to move through there quickly. Accordingly the 6000 level which was spoken about at length for most of this year is now a distant level and is probably some time away from being seen again.
(Daily chart below)
Australia 200 June 24 at 03:05 GMT 5689 H: 5696 L: 5669
Australia 200 Technical
During the early hours of the Asian trading session on Wednesday, the Australian 200 index is looking to maintain its break above the key 5650 level.
Further levels in both directions:
• Below: 5500.
• Above: 5650, 5800 and 6000.
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