The Australian stock market has just opened and traders are nervous.
It was only a few days ago that ASX200 traders were focused on a potential break up and through the seemingly impossible 6,000 level. Now, having failed for what is the 7th or 8th time this year to break topside, the focus is on the bottom of the year’s range at 5,743.
It is important to note that when traders are trading technically they always respect trend lines and/or range tops and bottoms unless, or until, they break. So there is no need to panic just because the ASX is at the bottom of this year’s range.
But if the range breaks the next move could be a big one.
Here’s the chart.