Bulls and Bears continue to fight it out on the ASX200

ASX200 Index Analysis

Time Frame : Daily

The ASX200 continues to be stuck in a narrowing range as bulls and bears fight it out. Price continues to hold higher lows to support the bull case but also holds lower highs for the bears. With the ASX200 opening strong today and backing away from highs, its a sign that the market continues to have concerns. This is all while the US potentially looks set to run into new highs if earnings continue to show promise. The trade talks have faded into the background for now as US earnings demand traders focus which should help to support the action. This in turn should help the ASX200 find some buyers but the question is whether price can break up and through 6740 to make a charge for new all time highs. At this stage we feel the market is heavy at the top end of the range and buoyant at lower levels so only time will tell what side wins out. For now, its a case of keeping some ammunition dry and not loading the boat to go fully risk on into shares. We expect that prime setups will be the name of the game with tight risk and booking gains when they present.

Index : ASX200

Current Price : 6697

Status : On watch for further consolidation and between lower highs and higher lows