ASX 200 could reach fresh highs
The Australian benchmark ASX 200 seems to be increasing its bullish momentum and could reach fresh highs in the coming trading sessions.
ASX 200 in its 2-hour chart shows the re-test of a pivot zone located at 5,349.9 pts. This swing zone is acting as a key resistance level, where it could confirm the bullish bias if the price manages to strike and consolidate above this level.
On the other hand, in terms of a chartist pattern, the Australian index reveals it is evolving in a potential inverse head and shoulder pattern in progress.
A bullish position will activate if the price rises and closes above 5,349.9 pts. Our potential first target is located at 5,731.3 pts. If the Australian benchmark increases its bullish momentum, the price could advance to 6,011.4 pts, and even raise until 6,312.4 pts.
The bullish scenario will be invalid if price pierces below 4,940.9 pts.
Trading Plan Summary
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Entry Level: 5,349.9 pts.
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Protective Stop: 4,940.9 pts.
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1st Profit Target: 5,731.2 pts.
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2nd Profit Target: 6,011.4 pts.
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3rd Profit Target: 6,312.4 pts.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
