AUS200 Technical Analysis 7 January, 2021

• AUS200 index reversed from resistance zone
• Likely to fall to support level 7300.00

AUS200 index recently reversed down from the resistance zone lying between the long-term resistance level 7630.00 (which reversed the price shortly in August) and the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing – which started the active correction 2.

Given the strength of the aforementioned résistance zone and the worsening risk sentiment as seen across the equity markets today – AUS200 index s can be expected to fall further toward the next support level 7300.00 (target price for the completion of the active wave 2).

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