ASX200 Index: Early Signs of an Upside Breakout

Uptrend
The Australian ASX200 Index advanced 1.1% during early trading hours today. In fact, the index's IT sector has already marked a fresh historical high last week, amid expectations that the tech companies are the most benefited from the coronavirus pandemic.
 
Meanwhile, official data released this morning showed that China's 3Q GDP grew 4.9% on year, missing consensus of +5.5%. However, Chinese economic activity still appears to be on a strong footing, as industrial production rose 6.9% on year in September (+5.8% expected, +5.6% in August) and retail sales climbed 3.3% (+1.6% expected, +0.5% in August).
 
On a daily chart, ASX 200 Index shows early signs of an upside breakout. The index has just broken above a bullish consolidation range since June, signaling more upside potential. The level at 5,915 might be considered as the nearest support level, while the 1st and 2nd resistance are expected to be located at 6,430 and 6,665 respectively.

Chart analysis of ASX 200 Index showing early signs of an upside breakout. Published in October 2020 by FOREX.com

Source: Gain Capital, TradingView

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