We have likely seen the end of the correction from the April Highs
The June '12 trendline remains unbroken and produced a sharp double-bottom pattern above it. The fact that both halves of the Double Bottom are sharp and aggressive (a Double V-Bottom) and then followed by an equally aggressive bullish run to break 5600 resistance does make me more comfortable with the bias we have seen the end of the correction.
The Double Bottom projects an approximate target around 5800 which also coincides with May 29th high, whilst 5850 may provide a more optimistic target is we are to reach the Weekly R2 resistance.
The Weekly Chart produced two Spinning Top weeks to warn of a loss of bearish momentum, which was then confirmed with the bullish close to a 3-week high.
5600 may provide buying opportunities upon any retracements
5600 was also a pivotal area to break as this also invalidated the bearish trendline from the April high. Any retracement towards 5600 is likely to gather bullish interest due to the several technical levels in this zone.
As we await for European and US equity market to open we do run the risk of a gap higher tomorrow on AUS200 if sentiment tonight is risk-on. That said if we are treated to a retracement towards the 5600 breakout level then we do have a decent technical argument for support to build and for another rally higher to occur.
AUS200 confirms Double Bottom to target 5800
The rally from 5377 strongly suggests we have seen the end of the correction from April's high having broken several key levels upon the way above 5600