ASX 200: general analysis

Current trend

After a significant decline and reaching the lows of June this year, the leading Australian economy index ASX 200 has been correcting upward since the beginning of the week and is trading at 5950.0.

Yesterday's meeting of the Australian monetary policy committee did not bring any surprises and confirmed the expectations of investors regarding the extension of the current rate of the regulator. The main goal remains to support jobs, income, and business in the country. The funding mechanism has been extended until the next meeting. The target money rate will not be increased until there is an improvement in employment and inflation reaches the target level, which is still 2–3%.

Seek (+9.63%), AP Eagers (+7.26%), EML Payments (+7.04%), and Netwealth Group (+5.36%) stand out among the growth leaders of the index components. The leaders of the decline are Whitehaven (–5.18%), New Hope (–3.50%), oOh!Media (–2.39%), and Ingrams Group (–0.96%).

Support and resistance

The price finally left the global upward channel and consolidated within a downtrend. The current corrective growth can be viewed from the position of testing the passed level, after which the decline may continue. Technical indicators continue to be on sale. The range of fluctuations of the indicator Alligator EMA is decreasing, and the histogram of the oscillator is trading in the negative zone.

Resistance levels: 6000.0, 6200.0.

Support levels: 5820.0, 5530.0.

Trading tips

After decline or consolidation below the local minimum at 5820.0, sell positions with the target at 5530.0 become relevant. Stop loss is 6000.0, above the local resistance.

After a reversal and growth or consolidation above the local resistance at 6000.0, buy positions with the target at 6200.0 and stop loss 5900.0 will be relevant.

Implementation period: 7 days or more.