Here’s a long term-chart of the ASX200, marking out the failed rally to 6000 points before, and where we are now.
It took a run at the 6000 mark back in 2015, but ran into overhead resistance — a term for a point at which enough markets participants (including algorithms) — decide to sell.
This morning the ASX200 is up slightly, trading at 5922 a short time ago.
It’s a busy week in markets, with an RBA decision, a Federal Reserve meeting, and all leading towards the French election at the weekend. We get earnings from the banks this week too.
That’s a lot of catalysts for another potential rally above the level it hasn’t seen since early 2008.
It’ll be interesting to see if the market can finally get over that seemingly incredibly strong resistance point in the coming days.