ASX 200 Higher But Faces The 6,200 Resistance

ASX 200 index trade higher for the second consecutive trading session, on optimism for a coronavirus vaccine and on news that the phase one trade deal between China and USA is intact after top officials assured that both sides see progress in the agreement.

InvestingCube's S&R Levels

NAS100

NAS100 (11325)

Not in Sell Zone

STOP

SELL

TP1

11250

TP2

11000

Wall Street finished to fresh record highs after the FDA approved the use of blood plasma from recovered coronavirus patients as a treatment option. FDA also might proceed with fast-tracking approval for the coronavirus vaccine by Oxford University and AstraZeneca.

ASX 200 stalled today for one more day at 6,200 mark despite the positive momentum. Gains of 4% from banking sector contributed the most to the ASX 200 index. Miners, on the other hand, are trading lower. Advertising company, Seven West Media reported 200.1 million losses and a 14% decline in revenues; the stock is down by almost 20% before the closing bell.

In economic data, the payroll jobs drop by 2.8% in the state of Victoria over the month to August 8th. Australian payroll jobs fell by 1.0% over the month to August 8th.

ASX 200 Daily Technical Analysis

ASX 200 is 0.17% higher at 6,113 but off the daily highs as the index rejected for one more day at 6,200. ASX 200 failed for the third time at that resistance, questioning the positive momentum. 

Bulls need to break above the crucial resistance at 6,200, which could be the start of another leg higher. Next resistance stands at 6,235 the top from March 9. More sellers await at 6,388 the high from March 6.

On the flip side, initial support for the ASX index is at 6,129 the daily low. The next level for ASX 200 to watch is low from August 18 at 6,056. If the bears break that level, then the next support is at 6,018 the 50-day moving average. 

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ASX 200 Daily Chart

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