Australia 200 (AU200 AUD) Breaks Above 5400 Resistance, Upward Move Likely

Australia 200 (AU200 AUD) Breaks Above 5400 Resistance, Upward Move Likely

Key Resistance Zones: 7000, 7100, 7200
Key Support Zones: 6100, 6000, 5900

Australia 200 (AU200AUD) Long-term Trend: Bearish
The index has continued its upward move after the initial resistance at 5250. Recently, the bulls broke the 5250 resistance and it is approaching 5600 resistance. Buyers have embarked on the upward move since March 20, when 4500 support holds. The bulls are breaching more resistance levels as the index reaches the high of 5400. On the upside, if the bulls sustain price above 5400, the market will reach a high of 6000. However, if the bulls fail to sustain the upward move, price will consolidate above 5200.

AU200AUD – Daily Chart

Daily Chart Indicators Reading:
Australia 200 is above 80% range of the daily stochastic. It appears AU200AUD is now in the overbought region. The market may fall if the index is overbought because sellers may emerge to push prices downward. It is doubtful if the upward move will continue. However, in some exceptional cases, the overbought condition will linger without sellers appearing to push prices downward.

Australia 200 (AU200AUD) Medium-term Trend: Bullish
On the 4- hour chart, the index is in a descending channel. The downward move has since been exhausted at the low of 4400. After the breaking of the resistance line of the descending channel, the bulls have been making frantic efforts to break 5400 resistance. At the moment, the bulls are making an attempt to break the resistance.

AU200AUD – 4 Hour Chart

4-hour Chart Indicators Reading
AU200AUD is currently at level 62 of the Relative Strength Index period 14. This implies that the index is in the uptrend zone and it is above the centerline 50. Besides, 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for Australia 200 (AU200AUD)
AU200AUD is making an upward move. The bulls are still battling the resistance at 5400. Buyers were unable to break this level since March 26. However, it is anticipated that if the bulls break the current resistance, the upward move will reach the previous highs

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.