The Australia 200 market closed in the green as lower-than-expected US inflation data was released. In addition, strong performance from tech stocks provided further support, giving the ASX 200 a lift for the second consecutive session.
Key Price Levels
Resistance: 8,700, 8,750, 9,000
Support: 8,600, 8,500, 8,400
Australia 200 Proceeds Toward the 8,800 Mark
As earlier noted, the ASX 200 market has continued its upward retracement for a second consecutive session. The most recent price candle remains green but shows an upper shadow, indicating some selling pressure. Nevertheless, price action remains above the 9-day Exponential Moving Average despite this brief contraction.
The Stochastic Relative Strength Index SRSI indicator lines are still in the oversold zone but have produced an upward crossover. Consequently, this suggests that the market may continue to push higher in the coming sessions.
ASX 200 Bearish Contraction Clearly Portrayed
On the 4-hour chart, the Australia 200 shows a noticeable short-term pullback. However, bulls appear to be maintaining control, as price action continues to hold above the 9-day EMA.
Meanwhile, the SRSI indicator lines are converging just above the 80 level, with no bearish crossover yet in place. As long as price action maintains its base above the 9-day EMA, the market may continue edging toward the 8,800 level.
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