Australia 200 (ASX 200) Trend Reverses as Market Enters a Losing Streak

The ASX 200 market has witnessed a significant price decline, which can be attributed to selling pressure. This was triggered after the U.S. trade tariff heightened, sparking a global equity sell-off. However, the market rebounded toward the close of the week’s trading activity. What can we anticipate in this market?

Key Price Levels:
Resistance Levels: 8,200, 8,400, 8,600
Support Levels: 8,000, 7,800, 7,600

Australia 200 Rebounds Off the 200-MA

Bearish activity has been more dominant in the ASX 200 daily market over the previous week. As a result, prices fell further, reaching noticeably lower levels than the week before. However, during Friday’s trading, the market recorded a rebound off the 200-day Moving Average (MA) line.

This technically revives bullish hopes in this market. Likewise, the Stochastic Relative Strength Index (Stochastic RSI) lines can be seen lifting from the oversold region. The terminals of these lines are also divergent, pointing to growing bullish momentum. Consequently, upside forces appear to be gaining strength.

ASX 200 Assumes a Subdued Appearance on Shorter Time Frames

Looking at the Australia 200 market on a 4-hour chart, we can see that price action remains below all the MA lines. However, the last price candle has lifted the market back to levels seen four sessions ago.

Additionally, the Stochastic RSI lines are rising from the oversold region, aligning price behavior with the prospect of further increases. Meanwhile, the 100-day and 200-day MA lines have formed a crossover above price action, creating a resistance barrier. Therefore, it seems safer for traders to target short-term gains around the 8,250 price level.

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