Australia 200 (AU200AUD) Plunges to a New Low, a Rally Is Expected

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

Australia 200 (AU200AUD) Long-term Trend: Bullish
Australia 200 is currently in ascending channel. The index is currently facing resistance at level 6200. The price is falling and it is approaching the low of level 5800. The downward move may extend to level 5750.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The index has fallen to level 55 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone. It is also above the centerline 50.

Australia 200 (AU200AUD) Medium-term Trend: Bullish
On the 4- hour chart, the index is in an uptrend. The index has risen to level 6200. The bulls tested the resistance twice to form a bearish double top. This pattern is responsible for the downward move. The downward move may reach a low of 5700.

4-hour Chart Indicators Reading
AU200AUD is below 20% range of the daily stochastic. The index has fallen to the oversold region. The implication is that the selling pressure is likely to be exhausted. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Australia 200 (AU200AUD)
Australia 200 is on a downward move. The index has to fall from the resistance at level 6200. The selling pressure has a broken support level 6100 to 5,800. The index may find support at level 5700.


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