Australia 200 (AU200AUD) Reaches Overbought Region at $6200, May Face Selling Pressure

Australia 200 (AU200AUD) Reaches Overbought Region at $6200, May Face Selling Pressure

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

Australia 200 (AU200AUD) Long-term Trend: Ranging
Australia 200 is fluctuating below level 6200 in the last four months. The resistance level has not been broken since June. Today, price is retesting the resistance level. A downward movement of price is expected. The market has also reached the overbought region.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping sideways indicating the sideways move. It has risen to level 60 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone and above the centerline 50.

Ay200AUD – Daily Chart

Australia 200 (AU200AUD) Medium-term Trend: Bullish
On the 4- hour chart, Australia 200 is in as uptrend. The recent uptrend is facing resistance at level 6200. Since October 12, buyers have been finding penetration at the resistance. The market may turn down if the resistance remains unbroken.

AU200AUD – 4 Hour Chart

4-hour Chart Indicators Reading
AU200AUD is above the 30% range of the daily stochastic. The index is in bullish momentum. Sellers are likely to emerge to push prices down. The 21-day SMA and the 50-day SMA are sloping horizontally as the market continues its sideways movement.

General Outlook for Australia 200 (AU200AUD)
Australia 200 is in an uptrend, but the overall trend is range-bound. The price has risen to the overbought region. The market may pause at a level before the resumption of a downward move.

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Author : Azeez Mustapha


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