Australia 200 (ASX 200) Breaches the 8,400 Price Level

The ASX market has experienced moderate gains since the start of the week. Contributing factors include U.S. President Trump’s inauguration. Meanwhile, the market is expected to gain further momentum, supported by the upcoming Chemist Warehouse and Healthcare merger.

Key Price Levels:

Resistance Levels: AUD 8,500, AUD 8,600, AUD 8,700

Support Levels: AUD 8,400, AUD 8,300, AUD 8,200

Australia 200 Sees a Contraction but Stays Above the 8,400 Threshold

Price action in the Australia 200 market has been trending higher since the beginning of the week. Today’s trading activity remains in the green, though some contractions have been observed. Despite this, the last price candle on the chart keeps the market above all the Moving Average (MA) lines.

Additionally, the 20- and 100-day MA lines have formed a crossover below the current price action. Similarly, the Stochastic RSI lines continue to move upwards into the overbought region, with the lead line already at the 99 mark and still projecting upward. Technically, this indicates that bullish momentum may remain dominant, keeping the market trading above the 8,400 threshold.

Will the ASX 200 Continue Trading Above the 8,400 Mark?

On the 4-hour price chart, the Australia 200 market remains above the 8,400 price level. However, the last price candle for the ongoing session has appeared red and compressed downward, revealing a long upper shadow. This suggests that bulls are resisting price declines. Additionally, the market continues to trade above all MA lines.

At the same time, the Stochastic RSI lines are in a crossover above the 80 mark. Traders should monitor whether the market sustains or rebounds off the technical support at the 8,400 price level. If this occurs, price action in the Australia 200 market may extend toward the 8,500 level.

Do you want to take your trading to the next level? Join the best platform for that here.