ASX200 trades into new all time highs intraday but fails to close above the level

Time Frame : Daily/Weekly

ASX200 Index

The ASX200 finally kicked up into new all time highs today to get the bulls all excited but could not close above the 6851.5 level. Taking a look at the weekly and daily charts below, there is every reason to believe that we may see a reaction lower. Prices are extended on all timeframes but that alone is no reason to take the bat and ball and go home. The key level now that we will be watching, along with price action, is the 6628 zone. Until this level is broken, bias has to remain up as we may see a squeeze higher as sellers try to pick the top and the action blows straight through the highs. Caution is key though and a bit of effort is required into finding those key setups that are primed and ready if the trend up does continue. If price action starts to get choppy and breaks below 6628, then we may see some short setups to enter. Its all about taking note of the action, planning out the different scenarios and managing risk.

Index : ASX200

Current Price : 6668

Status : On watch for a potential consolidation at the highs

Weekly Chart

Daily Chart

Alert History

Previous Alert 2/07/19

Time Frame : Daily/Weekly

ASX200 Index

The ASX200 has been slowly grinding its way to the all time highs since the beginning of the year. Price is now within striking distance of making new highs so we expect to see a charge up through 6700 and a push through new highs at 6851.5. Price has spent the previous few days consoldating above 6600 and a solid close above 6670 may bring the bullish move we are waiting for. The next question will be is whether or not the market will keep rallying or fallback below 6850 to consolidate. Bears are still believing in a major correction but all signs point to highs. We can only trade what we see and adjust positions when we have further data available. Until, then we still hold a long bias on higher probability setups with positive momentum.

Index : ASX200

Current Price : 6668

Status : On watch for further buying pressure