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Day five: our Australia 200 trade

Clearly I took profit on my long Australia 200 cash idea too early, with the index hitting a high of 5463. 

The big issue today is whether the Australia 200 can close above the October high of 5457. A close above here will bring out a fresh wave of momentum traders. I am cognisant however that the market is overbought at current levels and a pullback would be fairly healthy, especially if it were to materialise on low volumes.

From a fundamental perspective I am fairly neutral on the index on its current valuation, however from technical standpoint there is a strong trend and dips look like buying opportunities.

Australia 200
IG Charts

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