Australia 200 Makes Another Reach For Key 5800 Level

Australia 200 for Wednesday, May 27, 2015

In the last couple of weeks, the ASX200 index has moved back and forth around the key 5650 level, but in doing so, has temporarily halted the medium term down trend it was in from 6000. It has been able to move higher and reach again for the key 5800 level. During this time, it has experienced both support and resistance from the 5650 level, and presently it will be hoping to receive some more support from there. The key 5800 level is still looming large and is still likely to offer resistance if and when the index returns. Since the end of April, the Australia 200 index has seen significant declines, which have resulted in it reaching a three month low near 5550. Several weeks ago, the Australia 200 index pushed higher to a multi-year high just above the key resistance level at 6000, before easing lower throughout the last month back to around 5650.

Back in mid-March, the ASX200 index found some support at the key 5800 level, which has propped it up and allowed it to rally a little and move higher, and of course it will be hoping to receive the same again. Back in early March, the ASX200 index reversed from its highs near 6000 and started to establish a new medium term down trend before rallying higher a couple of weeks ago. It enjoyed a strong move higher throughout February, moving from below the key 5800 level up to another multi-year high near 6000, where it met stiff resistance. At the beginning of February, it spent a week or so battling with resistance at the key 5800 level, which repeatedly fended off the index, resulting in it easing back a little. This level has resumed its key role and is currently having an impact on the index.

Throughout the second half of January, the Australian 200 index did very well, and surged higher to move back above the key 5400 level and push on through to the new highs. At this time, the resistance at 5500 stood tall and fended off all advances; however, this now been broken strongly through. Throughout most of November and December, the Australia 200 index fell steadily lower down towards support around 5150 and two month lows before rallying back above 5400 again. Over the last few weeks, the Australia 200 index has struggled with resistance at 5400, which has forced it lower time and time again. The 5400 level has been a major player for the last 12 months, and the index must get back above this level to encourage more buying and bullish sentiment.

(Daily chart below)

Australia 200 Daily Chart

Australia 200 May 27 at 00:15 GMT 5748 H: 5785 L: 5711

Australia 200 Technical


During the hours of the Asian trading session on Wednesday, the Australia 200 index will be looking to stay above the key 5650 level and potentially make another push back to 5800.

Further levels in both directions:

• Below: 5500 and 5400.

• Above: 5800 and 6000.

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