Market Outlook

Chart of the week – Australia 200 further potential upside to retest all-time high zone

Chart of the week – Australia 200 

Australia 200 further potential upside to retest all-time high zone

Short-term technical analysis

Source: CMC Markets

Time stamped: 10 Apr 2021 at 2:00 pm SGT

click to enlarge chart

  • The Australia 200 (ASX 200) has managed to stage a recent bullish breakout on 6 April from its prior eight weeks of range configuration in place since 8 February.
  • Since its 6,720 swing low of 30 March, it has rallied by +4.3% to print a high of 7,010 on 8 April and started to evolve within a short-term ascending channel with its lower boundary now acting as a support at 6,863 that also coincides with the rising 50-day Moving Average.
  • If the 6,863 key short-term pivotal support holds, the Australia 200 may see a further potential impulsive up move to target the next resistances at 7,073 and 7,170/7,197 which is defined by the current all-time high level printed on 20 February 2020 and the 1.236 Fibonacci expansion of the previous up move from 1 February 2021 low to 16 February 2021 high projected from 19 March 2021 low.
  • On the other hand, an hourly close below 6,863 put the bullish tone on hold for a slide to retest the 6,718 key medium-term support (ascending trendline from 1 February 2021 low & 30 March 2021 swing low).