Australia 200 – Continues to Feel Resistance from 5800

Australia 200 – Tuesday 2 June 2015

In the last week or so we have seen the confirmation of a medium term  trend reversal as the ASX 200 index has edged up towards the key 5800 level.  It has however run into a wall of resistance at this level and  has been content to remain around 5750.  Key levels remain 5650 below and 5800 above.  The 5800 level still looms large and continues to apply downwards pressure on the index, as this has been a significant level for the index throughout this year.

Several weeks ago 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 2 at 01:05 GMT   5768   H: 5779   L: 5745

Australia 200 Technical

S3 S2 S1 R1 R2 R3
5650 5500 5800 6000

During the early hours of the Asian trading session on Tuesday, the Australian 200 index will be looking to make another run at the key 5800 level which has provided reasonable resistance to the index over the last week or so.

Further levels in both directions:

• Below: 5650 and 5500.

• Above: 5800 and 6000.

Economic Releases

  • 23:30 (Mon) AU AIG Services PMI (May)
  • 01:30 AU Current Account (Q1)
  • 01:30 AU Net Exports of GDP (Q1)
  • 04:30 AU RBA – Overnight Rate
  • 08:30 UK BoE – Mortgage Approvals (Apr)
  • 08:30 UK BoE – Net Consumer Credit (Apr)
  • 08:30 UK BoE – Secured Lending (Apr)
  • 08:30 UK CIPS/Markit Construction PMI (May)
  • 08:30 UK M4 Money Supply (Apr)
  • 09:00 EU Flash HICP (May)
  • 09:00 EU PPI (Apr)
  • 14:00 US Factory Orders (Apr)
  • 14:00 US IBD Consumer Optimism (Jun)
  • US Vehicle Sales (May)

* All release times are GMT

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