Australia 200 (ASX 200) Finds Solid Ground

The ASX 200 downturn has finally rebounded off support at 7,738, breaking its weeks-long downward correction. This recovery appears largely driven by gold reaching a new record high. Additionally, concerns over a U.S. recession have eased, encouraging traders to remain composed and reducing selling pressure in this market.

Key Price Levels
Resistance Levels: 8,000, 8,250, 8,500
Support Levels: 7,500, 7,250, 7,000

Australia 200 Moderately Retraces Higher Price Levels

The ASX 200 closed the week in positive territory after initially trending downward. Although the market declined earlier in the week, improving sentiment helped trigger a rebound during Thursday’s trading session. This bullish momentum carried into Friday, pushing prices higher.

However, despite this upward movement, price action remains significantly below all major moving average (MA) lines on the chart. Meanwhile, the Stochastic Relative Strength Index (Stochastic RSI) lines are moving upward following a crossover in the oversold region.

Upward Forces Strengthen in the ASX 200 Market

Price action on the Australia 200 (ASX 200) 4-hour chart is steadily rising through the 20-day MA line. The latest price candle is approaching the 50-day MA, maintaining a moderately sized body. However, when viewed through the lens of the Stochastic RSI indicator, a potential reversal appears imminent.

This assessment is based on the fact that the indicator’s lines have already signaled an overbought condition. Nevertheless, traders should note that the indicator’s lines are now moving sideways at the terminal level, suggesting that while the bullish trend remains intact, a temporary pullback may occur before prices move toward the 8,000 price level.

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