Australia 200 (ASX 200) Stays on Track

The ASX 200 reached an all-time high last week, specifically on Thursday. This milestone was influenced by President Trump’s decision to delay the implementation of reciprocal tariffs. As a result, profit-taking ensued, leading to a market dip on Friday.

Key Price Levels:

Resistance Levels: 8,500, 8,600, 8,700

Support Levels: 8,400, 8,300, 8,200

Australia 200 Experiences a Strong Pullback

While the market remains in an upward trend, it closed in the red on Friday. As mentioned earlier, price action broke through the 8,500 resistance level on Thursday. However, strong selling pressure triggered a significant downward correction. Despite this, the ASX 200 continues to trade above all major moving average (MA) lines.

The price candle representing the ongoing session is red, signaling a bearish market movement. Additionally, the Stochastic RSI lines have crossed just above the 50 threshold. However, given the overall market trend, the 20-day MA line may serve as a strong support level.

Downward Pressure in the ASX 200 Remains a Concern

The 4-hour ASX 200 chart indicates that price action is trending downward. The market has fallen below the 20-day and 50-day MA lines, while the Stochastic RSI lines have dropped into the oversold region.

Furthermore, both the lead and lagging lines remain unaligned in the oversold zone, and the absence of an upside crossover suggests that the downward retracement could extend further toward the 8,432 price level. That said, traders should stay informed about key fundamental developments that may impact price movements in this market.

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