ASX 200 technical outlook: is the index going to keep rising?
The index appears to have scope to rise further, albeit after a brief pause and what are the levels to watch?
ASX 200 technical outlook – bullish
Australia ASX 200 index’s break above another barrier at the December high of 7375 reasserts the uptrend. This follows the barrier at the August high of 7138 and a hold last year above crucial support on the 200-week moving average. The break above 7138 triggered a double bottom (the June 2022 and the October 2022 lows), pointing to a potential rise toward 7865.
The index has been resilient in the face of tightening of global financial conditions in recent months, approaching its record high compared to some of its peers that have yet to recoup a large part of last year’s losses. Furthermore, the price objective of the bullish double bottom pattern implies a break above the record high of 7633 hits in 2021 to new cycle highs.
ASX 200 weekly chart
In the near term, however, the ASX 200 index is looking overbought as it tests a stiff barrier on a rising trendline from a year ago (see the daily chart). The previous two retreats in the index from the resistance were associated with similar levels of the 14-day Relative Strength Index (RSI). Immediate support is at the December high of 7375.
Any break below would indicate that the short-term upward pressure had faded, pointing to a range developing. However, the medium-term uptrend is unlikely to be at risk while the index holds above the 200-day moving average (now at about 7000).
Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
