- ASX 200 moves above the 5,380-5400 long term range top resistance
- Push higher marks new 2016 highs
- Index may need to see a “higher low” formed above 5,380-5,400 to signal a clear shift in trend
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The ASX 200 is seeing further gains for the sixth consecutive day, as the index trades at new 2016 highs.
The Index has been trading for the past months in a well-defined range between the 5,380 resistance and the 4,750 support, which coincided with the 0.618 Fib level of the long term up trend leg from 2012.
After moving above the range top resistance, the ASX was able to clear the prior 2016 high at 5,431, which might now put the focus on 5,500 for possible resistance.
At this stage, the index might need to see a “higher low” being formed above the range highs on a “resistance turned support” basis, which may signal that indeed the bulls have really taken control and that the long term uptrend could be resuming.
A failure to hold above 5,380 might put the focus again on the 5,300 figure, which may act as support. If the index moves below that level, it might need to find a clear break below 5,200 and the 200 SMA before possible further support at the 5,100 figure.
ASX 200 Daily Chart: July 15, 2016