ASX 200 Technical Analysis: Index Approaches Key Support Again

ASX 200 Technical Analysis Talking Points:

  • The ASX 200’s downtrend has accelerated again
  • October’s bounce has been all-but erased
  • An important long-term uptrend could be under threat soon

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The ASX 200 has retreated even further from its psychologically crucial 6,000 level and indeed has returned to lows not seen previously since early 2017.

The daily-chart downtrend from late August’s peak is now quite entrenched. Indeed, it has accelerated sharply in the past month or so. There seems little reason to hope for a sustained reversal anytime soon either. The index like most others is fundamentally in thrall to trade-related global risk appetite. This can turn on a dime, as we saw between late October and early November when the ASX bounced, so fundamental predictions are unusually tough to make.

However, technically speaking, the Sydney equity benchmark now has its short-term gaze firmly on October 26’s intraday low of 5608.3. That is coming uncomfortably close to the bulls even if so far it is holding on a daily closing basis.

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