ASX 200 for the week starting 24th July 2017
Last trading week of July 2017: ASX 200 at cross-roads
It’s been over two months (from 18th of May) since ASX 200 has been trading in a little more of 200 points range: 5630 level to 5836. Within this range, the daily ranges are becoming smaller and smaller so it looks we have a symmetrical triangle chart pattern forming with lower highs and higher lows.
Trading opportunities for next week
Have a look at the chart above where the blue lines are forming a triangle and expect to intersect some time soon.
Next week it is likely to see where the triangle will be broken: up or down.
Scenario 1 : Upward Breakout
If ASX 200 takes the resistance line then it is a breakout up which is a bullish signal of continuation of the previous trend .
The next resistance would be 5778 – the previous high. Next ones could be 5786 (which is the 72 MA ) and the upper range high at 5836.
Scenario 2 : Downward Breakout
If ASX 200 breaks the support line (breakout down) this will a bearish signal and first support would be at around 5665 level – previous low and the level of 200 MA.
A stronger support area is between 5611 and 5630 – the lower range low.