Australia 200 (ASX 200) Bounces Back

The improving mood in the general stock market has also extended to the Australia 200 market. This is evident as price activity managed to reverse course after hitting the 7,200 price level. Additionally, the market recently pulled back slightly from a nearby resistance level but still appears to be on track for further recovery.

Key Price Levels

Resistance Levels: 7,500, 7,750, 8,000

Support Levels: 7,000, 6,750, 6,500

Australia 200 May Proceed Higher Toward the 20-Day MA

The ASX 200 market has shown significant activity on the daily chart. The market tested resistance at the 20-day Moving Average (MA) curve in the past two sessions. Price action rebounded downward with moderate momentum, causing the market to trade below the 7,600 price mark.

However, the market has since contracted upward, and the latest session at the time of writing appeared green. This supports the impression that price action is still moving toward higher levels. The Stochastic Rate of Change (SROC) indicator also has an upward trajectory from below the equilibrium level.

ASX 200 Retains a Favorable Base Level

On the daily chart, price activity remains in the green. However, the 4-hour chart presents an even more favorable outlook. In this timeframe, price action sits above the 50-day MA line, which itself is positioned above the 20-day MA line. Meanwhile, the most recent price candle is green.

The SROC indicator remains above the equilibrium level, and the terminal end of the indicator line appears green—signaling that bullish forces still dominate. Although upward momentum appears somewhat weakened, bullish pressure continues to hold the upper hand. Therefore, price action may still push toward the 8,000 level.

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