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Australian stocks have been trading in a wide sideways range since April 2021. At the start of 2022, the index bounced off the August 2021 high and declined to the May 2021 low level. By doing so, the stocks revealed a horizontal channel pattern.
In February, the index surged until it found resistance in the 200-day simple moving average near 7,350.00. The SMA was enough for a decline to start. The decline ended near the 7,000.00 mark, in the 6,925.00/6,940.00 zone. On March 22, the equities had recovered and reached above the 200-day simple moving average near 7,330.00.
If the index continues to surge, it would most likely face the resistance of the late 2021 high levels at 7,450.00/7,500.00, before approaching the 2021 and 2022 high levels at 7,648.80.
Meanwhile, a potential decline would look for support in the 200-day simple moving average near 7,330.00 and the 50-day simple moving average near 7,130.00, before approaching the low level zone at 6,925.00/6,945.00.
Tue, 22 Mar 2022 12:43:33 GMT
Source: Dukascopy Bank SA
Australian stocks have been trading in a wide sideways range since April 2021. At the start of 2022, the index bounced off the August 2021 high and declined to the May 2021 low level. By doing so, the stocks revealed a horizontal channel pattern.
In February, the index surged until it found resistance in the 200-day simple moving average near 7,350.00. The SMA was enough for a decline to start. The decline ended near the 7,000.00 mark, in the 6,925.00/6,940.00 zone. On March 22, the equities had recovered and reached above the 200-day simple moving average near 7,330.00.
If the index continues to surge, it would most likely face the resistance of the late 2021 high levels at 7,450.00/7,500.00, before approaching the 2021 and 2022 high levels at 7,648.80.
Meanwhile, a potential decline would look for support in the 200-day simple moving average near 7,330.00 and the 50-day simple moving average near 7,130.00, before approaching the low level zone at 6,925.00/6,945.00.