ASX 200 Tests The 100-Day SMA Support

ASX 200 index ended flat on Friday after a weak session in Wall Street as the big tech companies continue to drag the Nasdaq lower. Federal Reserve failed to impress investors keeping the interest rates and the QE unchanged. Wall Street wants to see more liquidity in the markets as the economic recovery slowed down in August. Despite today’s soft performance, ASX 200 managed to end higher for the week snapping for straight weeks of loses. The correction from the 6,200 recent highs looks that it stalled at the 100-day moving average. 

InvestingCube's S&R Levels

NAS100

NAS100 (11325)

In Profit

STOP

SELL

TP1

11478

TP2

11338

Energy sector and tech stocks finished the day higher, while the miners, BHP and Rio Tinto also finished higher. On the other hand, real estate and industrials were under pressure. 

Positive Surprise from Australian Jobs Data 

Yesterday the employment data surprised investors positively. The Aussie Unemployment Rate seasonally adjusted registered in at 6.8% in August below the expectations of 7.7%. The Australia Employment Change came in at 111,000, beating the expectations of -50,000. 

ASX 200 Technical Analysis

ASX 200 ended 0.21% lower at 5,870 on Friday slightly below the 100-day moving average. The index found support at that support the last seven trading sessions, as I have discussed in my previous analysis: ASX 200 Rebound From Nine Week Lows – Strong Support at 100-Day SMA.

Bears might challenge now the low from September 11 at 5,835. Next support for the ASX 200 index would be met at 5,778 the low from June 29. 

On the upside, resistance stands at 5,921 the daily top. If the ASX 200 index breaks that level, the next hurdle would be met at 5,957 the high from September 16. The 50-day moving average at 6,029 is the next supply zone. 

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ASX 200 Daily Chart

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