ASX 200 is trading at a 14-month high as commodity prices remain on an uptrend. To begin with, the recovery of economies and heightened demand from China has pushed iron ore prices to a record high of $226/tonne in the Singapore Exchange. The price represents a surge of over 10%. Subsequently, the share price of Rio Tinto (ASX: RIO) and BHP Group (ASX: BHP) have risen by 4.24% and 2.97% respectively.
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Furthermore, the rise of gold price to $1,836.25 has pushed the stocks of gold miners listed on ASX 200 higher. Newcrest Mining Limited (ASX: NCM) has had its share price surge by 2.80% while that of Northern Star Resources (ASX: NST) is up by 3.86%.
Other stocks that have fuelled the Australian index to its current high are those of energy producers. Following the rise in crude oil prices, Santos Limited (ASX: STO) has had its share price rise by 1.21% to AUD7.14.
ASX 200 Technical Outlook
ASX 200 has started the week at its highest level since February 2020. The index hit 7,170 before pulling back to its current 7,149.9, up by 0.89%. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages. Besides, the formation of an ascending channel signals further gains.
I expect ASX 200 to find support at around 7,135 as the bullish outlook continues. It is likely to find some resistance at 7,160 before moving higher to 7,182. However, this thesis will be invalidated by a move below 7,120.