The Australian Benchmark Remains Below 5,300

ASX 200 (5,260.00)

Points to consider with the Australian stock index:

• Should the Australian Bourse break above 5,300 then the range top comes into the crosshairs.
• The average trading range (ATR) is at its highest level since February of 2016.

The benchmark stock bourse in Australia, the S&P ASX 200 retraced earlier losses today to close higher. The index recoiled sharply higher after testing the technical support level at 5,100. We have seen volatility in this stock index pick up since the shocking Brexit decision which saw the United Kingdom vote in favor of leaving the European Union. Right now, the ATR reading show that this market is seeing its most volatility since February.

Australian Stock Index Technical Analysis

Today’s recovery saw the Australian bourse shoot higher from 5,100 to just below the key technical resistance level of 5,300. A daily close above this upside barrier can see a fresh challenge of the range top resistance. This technical barrier lines up in the area from 5,385 to 5,400. We also need to see a break, with daily close above 5,300 to signal a shift in structure that sees the bulls taking the range in this equity market.

Should the ASX 200 move back lower, then sellers will focus on the first key downside barrier at 5,200. A daily close below this technical support level brings 5,000 into focus. There is also a minor support level at 5,150 to watch. The next key support level below 5,000 is 4,900 then the range low at 4,750.