Australia 200 (AU200 AUD) in a Downward Move, Reaches Oversold at Level 5800

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

Australia 200 (AU200AUD) Long-term Trend: Bearish
Australia 200 is likely to continue the downward move. The uptrend was resisted at level 6200. The index fell to level 5758 and made an upward correction. A correction candle body is tested at 0.50 Fibonacci retracement level. This indicates that the index will fall and reach a low of 2.0  Fibonacci extension level.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The index has risen to level 50 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone.

Australia 200 (AU200AUD) Medium-term Trend: Bearish
On the 4- hour chart, the index is in a downward move. It has fallen to level 5800 and resumed a downward move. AU200AUD is currently facing resistance at the recent high. A downward move will ensue if the bulls fail to break the recent high.

4-hour Chart Indicators Reading
AU200AUD is below 20% range of the daily stochastic. It indicates that the market is in a bearish momentum. AU200AUD has reached the oversold region, buyers may likely emerge in the short term. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the previous trend.

General Outlook for Australia 200 (AU200AUD)
Australia 200 has fallen to the oversold region. By this buyers are expected to emerge. However, the Fibonacci tool indicates a sell signal.



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