The ASX 200 market has experienced a significant price slump following the Central Bank’s first rate cut of the year. As a result, the index has nosedived for five consecutive sessions, bringing prices below key technical landmarks. At this point, the market appears vulnerable to further declines.
Key Price Levels:
Resistance Levels: 8,250, 8,500, 8,750
Support Levels: 8,000, 7,750, 7,500
Australia 200 Experiences a Strong Pullback
Bulls in the ASX 200 market have been overwhelmed by the strong headwinds caused by the Central Bank’s rate cut. As a result, the market has dipped throughout the week, falling below most Moving Average (MA) curves.
Additionally, the 50-day and 100-day MA lines are converging, forming a bearish crossover above price action—a signal that could support further declines.
Furthermore, the Stochastic Relative Strength Index (RSI) is approaching 0.00, with the leading lines already at this level. Given the strength of the downward momentum, it is likely that the indicator’s lines will remain at this level, prolonging further price declines.
ASX 200 Maintains Bearish Momentum
Price action in the Australia 200 market appears to be accelerating toward lower price levels. Here, the last two price candles have shown significant bearish progress, evident from their size and positioning.
As a result, price action now lies below all MA lines on the price chart. Likewise, the Stochastic RSI lines have just crossed above the 60 level, indicating increased volatility. This momentum could assist the market in moving further downward.
Consequently, prices may decline toward the 8,100 and 8,000 levels in the near term.
Make money without lifting your fingers: Start trading smarter today
