Australia 200 (ASX 200) Maintains a Southward Trajectory

The Australia 200 market has continued to tumble, even amidst rising tensions in the Middle East. This has negatively impacted investor sentiment, causing the market to maintain a bearish course. Another contributing factor to the short-term trend is the latest inflation figure, which rose by 0.9%. Let’s examine how the market may perform in the coming days.

Key Price Levels

Resistance Levels: 8,800, 9,000, 9,400

Support Levels: 8,000, 7,600, 7,200

Australia 200 May Touch Down at the $8,500 Threshold

Bullish momentum in the ASX 200 market seems to have steadily declined, triggered by both geopolitical events and technical factors. Price activity has been consistently descending along the 9-day Exponential Moving Average (EMA) line. The last three candles on the chart are small but reflect continued downward retracement.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator lines had previously risen considerably above the equilibrium level. However, the histogram bars are now appearing below the equilibrium line, even as the MACD line steadily descends. Based on this, traders might anticipate a downward correction in the ongoing trend.

ASX 200 Bears Appear Threatening

On the Australia 200 chart, price activity is now clearly positioned below the 9-day EMA line. The last three price candles are bearish and progressively smaller—each one shorter than the last—suggesting a steady weakening of bearish momentum.

The MACD lines have now fallen below the equilibrium level, with the lead line slightly ahead while the lagging line follows. The histogram bars are solid red beneath the equilibrium line, reinforcing the bearish tone. This suggests that the market may soon test the $8,500 level. If this support fails, the next likely target could be the $8,400 mark.

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