FxWirePro: ASX200 Trades Slightly Lower on Political Uncertainty, Good to Buy at Dips
- Major resistance - 5290 (200 4H MA)
- The index has declined sharply from the high of 5284 on Australia's political uncertainty .It is currently trading around 5261.
- An increasing likely hung parliament is another blow to Australia confidence. Credit rating downgrade is possible if neither of major party manages to form government on its own.
- The intra day trend is slightly bullish as long as the support 5220 holds.
- The index's major resistance is around 5290 and any break above targets 5325/5350.
- On the lower side, support is around 5220 and any violation below that level will drag the index till 5200/5150/5100 in the short term.
- Overall bearish invalidation only above 5430.
It is good to buy at dips around 5220 with SL around 5175 for the TP of 5295/5325.