ASX 200 suggests breakout

The ASX 200 again tested resistance at 5550/5560 this morning, as shown on the hourly chart below. The index retreated, but not far, and another attempt is likely provided international markets behave overnight. Breakout above 5560 would suggest a long-term advance to 5800*. Reversal below 5520 is unlikely, but a fall below 5500 would warn of a test of 5375.

ASX 200

* Target calculation: 5400 + ( 5400 – 5000 ) = 5800