Australia 200 (ASX 200) Dips but Maintains Its Overall Upside Trajectory

The ASX 200 ended the week’s trading activity on a bearish note, largely due to losses in the country’s energy and healthcare sectors. This reversal wiped out some of the previous gains. Nevertheless, price action remains above key technical levels.

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 Bulls Hold On to Positivity

As mentioned earlier, price action in the ASX 200 daily market remains above critical levels which could be pivotal in determining whether the general trend will continue. However, the market experienced a significant downward retracement. Despite this, price action remains above all Moving Average (MA) curves.

Likewise, the Stochastic Relative Strength Index (RSI) lines continue to maintain an overall upward trajectory. The only indication of the price decline is a deflection in the RSI’s lead line. Consequently, it appears that the trend may persist despite the recent dip.

Will ASX 200 Rebound Shortly?

On the Australia 200 4-hour chart, price action suggests a potential rebound. The Stochastic RSI indicator lines have fallen sharply into the oversold region, yet price action has remained relatively stable with minimal movements.

Additionally, the market has fallen below the 20-day and 50-day MA lines but remains above the 100-day and 200-day MA curves. Consequently, the sharp decline in the Stochastic RSI lines suggests that downward momentum may soon be exhausted. Therefore, traders can anticipate a rebound around the 8,395 or 8,300 price levels.

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