Australia 200 (AU200AUD) Plummets Heavily, but May Bounce Upwards Soon

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

Australia 200 (AU200AUD) Long-term Trend: Bullish
The index is in an uptrend. It has been making a series of higher highs and higher lows. On July 29, 2019, the market reached its high of 6800. It was said to be in the overbought region. Sellers emerge as price drops to a low of 6400.

The upward move resumes as the market reaches a high of 7155 but was resisted. Price  plummets to a low of 6900. Bulls took the price to the high of 7167, thereby forming a bearish double top. The market fell because of the formation of a bearish double top. It fell to the low of 6615.

Daily Chart Indicators Reading:
Australia 200 has fallen to level 26 of the daily Relative Strength index period 14. It indicates that price has reached the oversold region of the market. That is selling has overdone. Buyers are likely to emerge to push the index upward.

Australia 200 (AU200AUD) Medium-term Trend: Bearish
On the 4- hour chart, Australia 200 is also in an uptrend. A bullish trend line is drawn showing support levels of the index. AU200AUD rebounded at the support of the trend line on January 6 and reached a high of 7154. At this high of 7154, the market was in an overbought region as it fell to a low of 6900.

4-hour Chart Indicators Reading
On February 19, price reached the peak price of 7200 but was resisted. The market fell to a low of 6615. This was the previous low of December 32019. Meanwhile, The market is below 20% range of the daily stochastic. At this moment, the market is in the oversold region. In other words, AU200AUD is in a strong bearish momentum. The momentum will remain until buyers emerge to push the indices upward.

General Outlook for Australia 200 (AU200AUD)
Australia 200  makes an impressive upward move, it soon reaches the overbought region of the market. This is done by suggesting sellers take control of price. The bears pushed the indices to the oversold region at 6615. The market is likely to go up once buyers emerge.

Instrument: Australia 200 (AU200AUD)
Order: Buy
Entry price: 6586
Stop: 6300
Target: 7200

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