Chart of the Day: AUS200
An interesting setup that’s come onto the high-watch list is that of the AUS200 on the daily timeframe. We saw a higher low of 6395 on 26 August, and from there we’ve seen a strong trend into 6700.
After strong price expansion in the daily ranges, we’re now seeing consolidation, with a rising wedge pattern clearly in play. This suggests downside risks are brewing, however, as always with this type of setups we want to wait for the price to close below the rising uptrend. Then, as always, we react to price and take a position with greater conviction should we see vulnerability expressed in the price action.
The preference at this stage, though, is for long positions given price had every opportunity to break below Tuesday opening low, but the buyers supported and we’re seeing price print a higher high, breaking through 6704 resistance.
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