Scanning for chart patterns in real time
Autochartist makes it easier to trade successfully with its tools that automatically identifies chart and Fibonacci patterns.The Australia 200 has been trending higher since making a low at 4312 on August 24. The rally has carried the index to what could be a triple top on the daily time frame, with previous highs at 4622 and 4598. However, the continuation higher could first pull back before the bulls are ready to rally again, and this correction could begin with a break below 4562—this is the current price of the Triangle’s uptrend line support on the 15-minute time frame.
The pullback itself, though, could be nothing more than short-term profit taking, and the very act of moving lower often attracts bulls to buy into lower prices if the trend is still perceived to be up.
The key to the continuation will be Forecast area support holding between 4527 and 4476 (F), which could also define a floor at the prior low along 4516. This level has been support for the past two sessions.
