ASX 200 Technical Analysis: Crucial 6000 Support Back In Focus

ASX 200 Technical Analysis Talking Points:

  • The index has been above the key 6000 level for five months
  • However that’s less than half the time it managed on the last occasion it got up here
  • Bulls probably need to defend this point now

Get live, interactive coverage of all major Australian economic data at the DailyFX Webinars

ASX traders seem to have abandoned all hope of revisiting August’s ten-year highs anytime soon, with the index instead sliding to lows not seen since June of this year.

The global fundamental backdrop has a lot to answer for here, with investor worries that many more US interest rate rises are still to come in this cycle weighing on Wall Street and rippling out into the world beyond. Trade-war fears remain very real and these will always hit the stock markets of a trading nation like Australia.

Technically speaking the Sydney stock benchmark looks to be in some trouble now. On its daily chart you can clearly see that its sharp, recent falls have taken it on a daily-closing basis below both the first and second Fibonacci retracement levels of its

Article source: