ASX encounters resistance

The ASX 200 gapped up at today’s open, but encountered strong selling at recent highs of 5550 — evidenced by large volume on the hourly chart. The index retreated, but respect of support at 5525/5530 and the rising trendline indicates buyers remain in control. Breakout above 5550 would signal another primary advance, with a long-term target of 5950*.

ASX 200

* Target calculation: 5450 + ( 5450 – 5050 ) = 5950