Australia 200 (ASX 200) Stays Below the 8,000 Threshold

While the general stock market faced challenges, the Australia 200 (ASX 200) market continued to edge higher. The upward rebound began when price action tested support at the 7,750 price level. Much of this impressive movement can be attributed to the strong performance of supermarket stocks. However, on Friday, the market rebounded off the 8,000 resistance level.

Key Price Levels
Resistance Levels: 8,000, 8,250, 8,500
Support Levels: 7,500, 7,250, 7,000

Australia 200 Shows Signs of Persistent Tailwinds

The ASX 200 market has recorded notable gains throughout the week. Even as other stocks declined, this market held its ground against negative influences. However, Friday’s session was not as profitable, as price action rebounded off resistance at 8,000. Nevertheless, the corresponding price candle has a long lower shadow, indicating that bullish forces are still active.

Meanwhile, the Stochastic RSI lines are trending upward in the overbought region. The lead line appears slightly deflected to the side in response to the market’s downward rebound.

ASX 200 Buyers Take a Bold Stand

Although the ASX 200 has been trending higher for most of the past week, going long in this market still requires strong conviction. On the 4-hour chart, price action is positioned between the Moving Average (MA) lines but has rebounded off the 20-day MA.

Meanwhile, the Stochastic RSI indicator is still following a general downward trajectory and has entered the oversold region. The lead line appears slightly deflected toward a potential crossover in this region. As a result, price action may require additional support from economic news or fundamental catalysts to successfully break above the 8,000 price level.

Make money without lifting your fingers: Start trading smarter today