Australian Economy

AUS200 Technical Analysis 7 October, 2021

• AUS200 reversed from support area
• Likely to rise resistance level 7360.00

AUS200 index continues to rise after the price reversed up from the support area lying between the key support level 7156 (which has been reversing the price from July, as can be seen from the daily AUS200 index chart below) and the lower daily Bollinger Band. The upward reversal from this support area created the 3 consecutive Japanese candlesticks reversal patterns Hammer, highlighting its strength.

Given the clear multi-month uptrend and the proximity of the aforementioned support area, AUS200 index can be expected to rise further toward the next resistance level 7360.00 (top of the previous Shooting Star from the end of September).

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