Forex Marketz Daily Forex News – Fully Markets Update
The Australian benchmark S&P ASX 200 has hit a new two year high in the past week. How long can it maintain these price levels before falling?
The index has been holding steady, as can be noted on the below daily MT 4 chart, since peaking at 5,900 on the 31st of March. The average trading ranger (ATR) is a thin 68-70 points, which is due to indecisiveness. At 5,800, the Australian bourse remains solidly above its 100 and 200 day moving averages. This adds too worries of how long prices can stay at these levels.
This is not the first time, since 2016, the Australian stock market has been above the daily moving averages. The bullish uptrend from 2016, when price action topped both the 50 and 200 DMAs has yet to be reversed. We came close in November, but the bulls had other plans.
Australian ASX 200 Technical Analysis
Both the daily moving averages remain moving higher giving cautious hope for more gains. Even though this stock bourse is a tad overbought.
However, to really convince traders, this index to consolidate a bit and wind up and it has yet to do that. The ASX has seen a losing closing level in five trading sessions and the following support levels at 5,820.30 and 5,745.65, which are the March 28 and 27th closing levels are now in play.
Should the index return to those downside barriers, then the recent bullish move will be in jeopardy. The market will also return to its broader trading range and another push higher will have failed.
