Australia 200 (ASX 200) Rebounds Modestly

During the previous week, the stock market rebounded following a major bank release. The Australia 200 market managed to close in the green last week. This has kept the market slightly above key levels and, as such, suggests that further moves may be seen.

Key Price Levels

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

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

Australia 200 Bulls Keep Their Edge

As mentioned earlier, the ASX 200 index edged upward and closed in the green. However, a contraction can be observed on the last price candle. Still, trading remains above the 9-day Exponential Moving Average (EMA) line.

Likewise, the Stochastic Relative Strength Index (SRSI) indicator lines have just delivered an upward crossover just above the 50 threshold of the indicator. The SRSI lines are diverging and proceeding upward. Technically, this favors continued bullish momentum.

ASX 200 Registers a Negative Bounce

The Australia 200 market has recorded a downward move on the 4-hour price chart. Nevertheless, trading activity has remained above the 9-day EMA curve. While the immediate impression reflects a bearish move, the fact that price action is still above the 9-day EMA line indicates that upward forces are still likely to persist.

At the same time, the SRSI lines have reached a considerable level in the overbought region, but due to the negative rebound, a deflection can be observed on the lead line of the indicator. At this point, traders can anticipate an upward rebound off the 8,848 price level toward the 9,000 price level.

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