ASX bounced nicely off its support, potential to rise!

20 Mar 2018

ASX bounced nicely off its support at 5906 (61.8% Fibonacci extension x2, 78.6% Fibonacci retracement, horizontal swing low support) where it could potentially rise to its 1st resistance at 5988 (61.8% Fibonacci extension, 100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance). If it breaks past this point it could potentially rise to its 2nd resistance at 6036 (100% Fibonacci extension, 78.4% Fibonacci retracement, horizontal swing high resistance). We have also identified a 2nd support at 5868 (50% Fibonacci retracement, horizontal swing low support).

Stochastic (34, 5, 3) shows it approaching its support where a corresponding bounce might occur. We have also identified a bullish divergence with price.