Australia 200 (ASX 200) Poised for Further Price Increases

The Australia 200 market has been trending slightly upward in recent sessions. The Australian economy has managed to maintain its positive momentum, which has supported modest gains in the ASX 200 index. Although Friday’s session closed in favor of the bulls, let’s explore how the market may perform in the days ahead.

Key Price Levels

Resistance: 9,000, 9,500, 10,000

Support: 8,000, 7,500, 7,000

ASX 200 Sees a Bearish Rejection But Stays Afloat

Price movement in the Australia 200 daily chart has been pressing steadily against the upper boundary of the Bollinger Bands (BB) indicator. In the most recent session, price action broke through this upper limit, pushing the index to trade above the BB’s top boundary.

However, the session closed with a downward retracement as bears responded with opposing pressure. Despite this, the last price candle remains above the upper band of the BB indicator. The Smoothed Rate of Change (SROC) indicator line continues its newly formed upward trajectory, reaffirming bullish prospects.

ASX 200 Appears Unready for Major Downward Corrections

On the 4-hour chart of the Australia 200, price action has pulled back slightly more than observed on the daily chart, falling just below the upper band of the BB indicator. Nevertheless, the BB indicator itself retains an upward tilt.

Additionally, the latest bar on the chart is a green candle, albeit small in size. Price remains above the middle band of the BB indicator, while the SROC indicator line stays above the equilibrium level. Technically, this indicates buyers still hold the advantage. As such, the market may continue its advance toward the 9,000 resistance level in the coming days.

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