The ASX 200 had a great start to the year, but has since seen prices pull back from tis YTD highs. Yet is we zoom out, the daily trend remains bullish overall, and prices during the recent decline appear to be corrective.
It's pullback has also found support around a cluster of support levels including the 38.2% Fibonacci retracement, 50-dy EMA, monthly pivot point and 7300 round number. And as RSI recently reached oversold and has since formed a bullish divergence with price, we see the potential for a rally towards 7500.
As US traders are set to return to their desks after the 3-day weekend, there is a reasonable chance of an 'up day' which could spill over to a positive start for the ASX tomorrow. Therefore, we're happy to enter the ASX long ahead of the close with a stop beneath this week's low, and initially target 7500.
It's pullback has also found support around a cluster of support levels including the 38.2% Fibonacci retracement, 50-dy EMA, monthly pivot point and 7300 round number. And as RSI recently reached oversold and has since formed a bullish divergence with price, we see the potential for a rally towards 7500.
As US traders are set to return to their desks after the 3-day weekend, there is a reasonable chance of an 'up day' which could spill over to a positive start for the ASX tomorrow. Therefore, we're happy to enter the ASX long ahead of the close with a stop beneath this week's low, and initially target 7500.
