Australia 200 (AU200AUD) Deepens Into the Oversold Region as Buyers Fail to Emerge

Australia 200 (AU200AUD) Deepens Into the Oversold Region as Buyers Fail to Emerge

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

Australia 200 (AU200AUD) Long-term Trend: Bearish
Australia 200 is currently in a downtrend after a sharp fall. The downward movement is continuing. It is unclear when the selling pressure will subside. The first bearish impulse reached the low of 6200 and the price pulled back. After a retest at 6400, the downward move continued to the low of 5400.

The market fluctuated at that level and then moved to the low of 4904. At the moment, the index has fallen to the oversold region. Buyers are not emerging at the oversold region as the index continued to remain in the oversold region. In the meantime, the index is still falling.

AU200AUD – Daily Chart

Daily Chart Indicators Reading:
The index has fallen below 20% range of the daily stochastic but the bands are horizontally flat. The ranging stochastic band implies that buyers have not been emerging to push the coin upward. In the meantime, the index is in the oversold region of the market.

Australia 200 (AU200AUD) Medium-term Trend: Bearish
On the 4- hour chart, the index was previously in a sideways trend. The index is now in a bearish trend. In the first bearish impulse, the market reached the low of 5500, then pulled back to make a retest at 6600. After the retest, the downtrend resumes.

AU200AUD – 4 Hour Chart

4-hour Chart Indicators Reading
Australia 200 is currently at level 22 of the Relative Strength Index period 14. This implies that the coin is oversold suggesting bulls to take control of price. Besides, 21-day and 50-day SMAs are sloping southward indicating the downtrend.

General Outlook for Australia 200 (AU200AUD)
AU200AUD is in a serious downtrend. The downward move is unending The index has fallen into the oversold region suggesting bulls to take control of price. The index has remained in the oversold as the bulls failed to emerge.

Instrument: Australia 200 (AU200AUD)
Order: Sell
Entry price:4904
Stop: 5250
Target: 3500

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.