ASX 200 Technical Analysis:Important Long-Term Support Eyed

ASX 200 Technical Analysis Talking Points:

  • The ASX 200 remains in retreat
  • However, this month’s significant lows seem to be holding
  • Their fate could be an important directional clue

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The ASX 200’s retreat from the key 6000 level has stalled at an interesting point whose fate could be crucial for near-term direction.

Having topped that psychologically important point back in May of this year, the Sydney stock benchmark went on to add another 400 points or so, taking it up in August to peaks not seen for more than ten years.

However it has since retreated back under 6,000 and then shed yet another 400 points, giving us about as much room between current levels and 6000 as there is between 6000 and that ten–year peak.

Holding at November's Low. ASX 200, Daily Chart

For the moment, support at 5583.4 is the limit of the bears’ downward push. That was the intraday low of November 20 and it has held since.

It’s also the lowest point the index has plumbed since December

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