Australia 200 (ASX 200) Slides Lower

The Australia 200 market has continued to descend to lower price levels for most of the previous week. Coupled with fading hopes of a rate cut, it seems possible that further declines may be seen. On the technical front, price action appears set for steeper falls as we head into the new week.

Key Price Levels

Resistance: 9,000, 9,300, 9,450

Support: 8,500, 8,250, 8,000

Australia 200 Seems Focused on the 8,500 Baseline

For most of the previous week—as mentioned earlier—the ASX 200 market has stayed on a bearish path. As a result, price action on the future daily chart has not been able to move past the 9-day Exponential Moving Average (EMA) line.

Similarly, the lines of the Stochastic Relative Strength Index (SRSI) indicator are also dropping into the oversold zone of the indicator following a crossover at the 20 level. This suggests that upside forces remain under a strong barrier.

ASX 200 Price Movement Affirms Bearish Dominance

The behaviour of price action continues to hint at ongoing suppression below key technical levels. The last price candle on the Australia 200 chart has revealed that the market is not ready for a bullish comeback with its red appearance.

Meanwhile, the SRSI indicator holds an upside crossover. However, this seems largely due to the upward deflection that occurred in the previous session. Furthermore, the SRSI lines are still in the oversold region and therefore suggest that bears remain in the lead. Consequently, it seems logical for traders to brace for impact at the 8,500 price level.

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