Fundamentals are important in economics and markets, but when it comes to trading, making money is what it’s all about.
So traders use other tools such as technical analysis to help guide them toward levels where they can buy and sell.
Trend lines are one of the simplest ways to do this and it appears that traders on the ASX200 are watching massive support at the moment which the ASX 200 bounced off again yesterday.
Yesterday’s low was exactly on the upsloping trend line. Likewise, this week’s high was right on resistance.
It’s a range that is tightening. It’s a range that has persisted since the March lows. It’s also a range that will break eventually.
Whether it’s up and out, or down and through, no-one knows yet. One thing is certain though: traders are likely to jump on the move.