Annual Forecast for Australia 200 (2021): AU200AUD Will Shine as COVID-19 Subsides

Annual Forecast for Australia 200 (2021): AU200AUD Will Shine as COVID-19 Subsides

Key Resistance Zones: 7200, 7300, 7400
Key Support Zones: 6100, 6000, 5900

In 2020, Australia 200 reached its peak price but crashed. Thereafter, the index used the remaining months to correct upward. In January, the market reached a high of 7200 and there was a sudden breakdown in February and March. The breakdown reached a low of level 4420.60 and pulled back. Since April, the price has been correcting upward. By December the price has moved up to level 6662.70.

AU200AUD – Monthly Chart

Australia 200 (AU200AUD) Price Predictions: Monthly Chart
Following the breakdown in the first quarter, the bulls bought the dips to resume a fresh uptrend. In June the candlestick with long wick indicated a strong selling pressure at a higher price level. The upward move was put on hold for three months before the index fell in September. In October, the 6000 resistance zone was breached as the index reached a high of level 6662.70 in December.

AU200AUD – Weekly Chart

Australia 200 (AU200AUD) Price Predictions: Weekly Chart
In the first quarter of 2020, the index reached the overbought region of the market. In the overbought region, sellers emerged to push prices down. The index fell to level 4420.60 and pulled back. At level 4420.60, the market reached the oversold region. Buyers have also emerged to push prices upward.


Conclusion
In general, Australia’s stock market struggled to recover ground during COVID-19, pandemic. In 2021, there is likely to be a change in the value of stocks and investors will be attracted. This is because a vaccine-fueled global economy is on standby to handle the COVID-19 crisis. In other Australian stocks are set to shine.


Note: Learn2.Trade 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.