The Australian share market has kicked me in the head again. I’ve been calling for a short term pullback to the 4,700 region, but the strength overnight and today has delivered another lesson in humility. More importantly, the risk in the Australia 200 index shifts to the upside.
Here’s the price action:
Australia 200 – Daily
Not only did the market break the resistance at 5,025, the MACD has crossed, turning positive. This suggests the possibility of a test of the highs at 5,165. I’m looking at the following trade: