The Australia 200 index is trading a range between 6,095 and 6,285. While investors and traders argue over the admittedly unclear fundamentals, those with an eye on the charts will watch these levels closely.
Any push up through the recent highs could be very positive. It would make a test of the ten year highs around 6,375 more likely. On the other hand, a breach of the support around 6,095 may see significant further weakness. The sharp rise since late 2018 measn there is scope for a tumble.
The Fibonacci levels tell the story. The 6,095 support is near the 23.6% retracement level, and the bounce may mean any correction is over. However a fall through that level introduces potential targets around 5,950 (31.8% retracement), then 5,850 (50%) and possibly 5,750 (61.8%).
A breach of either level may inform both trading and investing strategy.