Australia 200 (ASX 200) Punches Through the 20-Day MA Support

The Australia 200 market ended the week in bearish territory. This remains true even as Australian banks and commodity stocks experience notable gains. At this point, the market seems to be eyeing the next psychological support level. Let’s examine how this may play out.

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

Support Levels: 7,900, 7,880, 7,800

Australia 200 Wipes Out Recent Gains

Traders in the ASX 200 market may have suffered the loss of recently accrued gains due to Friday’s price dip. The market was unable to record notable gains after its price action recently crossed above the 20-day moving average (MA) line.

The price dip on Friday saw price action fall back below all the MA lines on the chart. Meanwhile, the Stochastic RSI remains in the oversold region but has a downward trajectory as it falls toward the 80 mark.

ASX 200 Eyes Deeper Waters

Even in the 4-hour ASX 200 market, one can see price action resting on the 100-day MA line as a support level. However, the last price candle appears much smaller than the previous one, indicating a steady decline in bearish momentum.

Simultaneously, the Stochastic RSI lines have already touched the 0.00 price level. Technically, while the market appears to be eyeing deeper waters, an upward bounce may soon occur as price action reaches key baselines. Consequently, traders can target an upward rebound toward the 7,950 mark and potentially 8,000. However, emerging fundamentals may play a crucial role in determining the next move.

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