Australia 200 (ASX 200) Bears Fail to Wipe Out the Week’s Gain

The general sentiment in the global stock market hasn’t eluded the Australia 200 market. This caused a dip in the Australia 200 market at the close of the week’s trading. Despite this, this market remains above critical technical levels.

Key Price Levels

Resistance: 8,700, 8,750, 9,000

Support: 8,600, 8,500, 8,400

Australia 200 Market Sustains Above Key Level

Price activity in the ASX 200 daily market has been able to keep its base above the Exponential Moving Average (EMA) line. The last price candle on the chart, however, brought some notable retracement to the market.

Nevertheless, this market keeps trading above the 9-day EMA curve. The Stochastic Relative Strength Index (SRSI) indicator lines look a bit ruffled at the terminal but dipped below the 80 mark of the indicator.

However, with price action standing above the 9-day EMA curve and the SRSI still above the 70 mark, this market may bounce off the support at the 9-day EMA.

ASX 200 Headwinds Look Formidable

The latest dip in the Australia 200 market takes on a strong appearance on the 4-hour chart. The last price candle has dipped the market below the 9-day EMA curve. However, the same price candle has a lower shadow, which suggests that upside forces are acting in opposition.

Also, the SRSI indicator lines are shaped in response to the latest price shift. At this point, traders in the market need to pay close attention to catalysts that may assist an upward rebound, seeing that the SRSI indicator lines are in the overbought region irrespective of price action’s trajectory. Otherwise, this market may edge toward the 8,500 support.

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