Thursday, 24 July 2014

ASX 200 finally breaking through long term trend line resistance, what next?

Weekly chart shows the ASX 200 finally breaking through long term trend line resistance, after many previous attempts. Charts in this post include after hours trade through to the current European session. Barring a big reversal lower in the next 36 hours or so, the market should close the week above the trend line. So, what next?



Daily chart suggests that trend channel resistance would be tested around 5625. Given the potential that US stocks are very close to the end of their rally from the 2009 low, combined with the relatively weak weak weak performance of the ASX 200 since that 2009 low, I wouldn't be getting too excited about the bullish potential of this burst higher. I'm looking for the ASX 200 to complete a false break above that weekly chart trend line, some time in coming weeks. I'm fully aware that this market may not follow my roadmap, in which case I'll stay clear of trading it til either the market changes path, or I change my plan.


GBP/USD testing two key long term supports

GBP/USD is testing the trend line drawn from the 2013 low, plus the support zone around the 2005 low and 2009 high.