ASX 200 Index: Bullish Breakout of Triangle Pattern

Chart showing uptrend

Asia Pacific markets perform positive today. Australia's ASX 200 rose 1.2%. Meanwhile, Japan's Nikkei 225 was up around 2.7% and Hong Kong's Hang Seng Index climbed around 2%.

Let's take a look the important equity news for Australia market first. National Bank of Australia (NAB), a major Australian bank, announced the launch of a 3.50 billion Australian dollars capital raising though share sale, saying the action "is expected to increased the Group's Common Equity Tier 1 Capital (CET1) ratio to 11.20%" from 10.39% as of March 31, 2020. Meanwhile, the bank reported that 1H net income declined 51.3% on year to 1.31 billion Australian dollars and net operating income fell 3.4% to 8.57 billion Australian dollars on net interest income of 6.91 billion Australian dollars, up 1.9%. The bank proposed an interim dividend of 0.30 Australian dollar per share, down from 0.83 Australian dollar per share in the prior-year period.

For the Australia's ASX 200 Index, there is an interesting pattern to focus on the 30 minute chart. The index has validated a bullish breakout of the symmetric triangle, a bullish continuous pattern to indicate the resumption of recent bullish trend. Besides, the golden cross between 20-period and 50-period moving averages has been identified, indicating a bullish outlook. Currently, the prices also break above 5279 (the previous high and 38.2% retracement level). As long as 5230 acts as the key support level, the index prices could consider a further advance to the resistance level at 5345 and 5389, corresponding to the 61.8% retracement level between April 17 high and April 22 low.

TradingView chart of ASX and other popular indices. Analysed in 2020

Source: GAIN Capital, TradingView

Related tags: Indices Australia ASX

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