ASX 200 Technical Evaluation Speaking Factors:
The ASX is again to highs not seen since final October
Nevertheless, it’s wanting somewhat overbought now
If it might maintain on near present ranges, one other push greater might be coming
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The ASX 200 has powered as much as highs not seen for 4 months, with its strengthening uptrend leaving its former buying and selling vary far behind.
Bullish focus now turns to a resistance zone between 6115 and 6232, figures which bounded commerce final time the index acquired up this excessive, between September 6 and October eight final yr.
The bulls have put in fairly a formidable efficiency because the lows of late December, and so they’ve stepped up the tempo up to now two weeks, however they’ve nonetheless but to make a convincing foray again into this resistance area- one confirmed by a succession of every day closes.
They might but handle to take action, however it’s notable that the ASX’s Relative Energy Index is beginning to look very over-sold. It at present registers across the 74 deal with, clearly above the 70 mark which normally units the alarms ringing.
Briefly this seems to be like an index in want of some consolidation. It can in all probability stay fairly bullish, a minimum of within the short-term, if that consolidation takes place above the previous buying and selling vary, marked in inexperienced on the chart above.
Even a fall again into it needn’t be disastrous for the bulls’ case. However it could turn into extra critical if the daily-chart uptrend line from January three provides manner.
Nonetheless, that’s not the popular situation at current, and it might be finest for the uncommitted to attend and see the place that consolidation happens earlier than moving into the market now. It could give a helpful clue, and buyers in all probability gained’t have very lengthy to attend for it.