The ASX 200 is approaching a key resistance level

Australian stocks soared on Tuesday, seemingly out of nowhere.

All sectors bar utilities ended firmly in the black, led by financials which added an enormous 1.8%.

With the largest component within the index ripping higher, the ASX 200 closed up 1.3% at 5,821.2 points, its largest one-day gain in four months.

It was also its highest closing level since May 5,2015.

The chart below tells the story.

With the index marching higher, it’s now within touching distance of a key resistance level that it’s struggled to overcome in the past, says Chris Weston, chief market strategist at IG Markets in Melbourne.

That would be 5,833 points.

“(If) we get a break of this ceiling, the prospect of 6000 comes into play as this is the measure of the recent range projected on from 5833,” he says.

Here’s a chart of the technical setup for the ASX 200 from Weston.

Source: IG Markets

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