Australia 200 (ASX 200) Descends Lower

Throughout the week, price action in the Australia 200 market has continued its downward retracement. The market appears to have the potential to move further lower in the coming week, as price action currently remains below key technical levels.

Key Price Levels

Resistance: 9,000, 9,300, 9,450

Support: 8,500, 8,250, 8,000

 

Australia 200 Bearish Outlook Thins

On the ASX 200 daily chart, price activity has fallen below the psychological support at the 9,000 level. This has kept price action capped below the 9,100 resistance mark.

However, the last two sessions suggest limited movement, as prices appear relatively flat below the 9-day Exponential Moving Average (EMA) curve. At the same time, the lines of the Stochastic Relative Strength Index (SRSI) indicator are positioned in the oversold region and have converged there. This alignment suggests that a bullish breakout could be imminent, as price action may have reached a near-term bottom.

ASX 200 Retains Vulnerabilities

Price activity in the Australia 200 market has shown a modest rebound. Nevertheless, it remains below the 9-day EMA curve. The latest candle, however, closed in green.

Meanwhile, the SRSI indicator lines are also converging, but unlike those on the daily chart, these lines stand just above the 50 mark on the indicator. Therefore, traders may want to watch for a move above the 9-day EMA curve as an early signal of a stronger upward thrust toward the 9,250 price level.

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