ASX 200: the downtrend in the index continues
Current trend
The ASX 200 index is showing a downtrend, trading near 7317.0.
The quotes of the main Australian index began to adjust downward after the Governor of the Reserve Bank of Australia (RBA) Philip Lowe announced a rather pessimistic scenario of the dynamics of the national economy. According to the official, there will be no significant progress in stabilizing inflation in the next year or two, and there is no point in talking about raising the interest rate. The only step that the regulator can take is the reduction and subsequent abandonment of the bond buyback program until the end of 2022, if the economic recovery proceeds within the framework of the RBA forecast.
As for corporate news, the day before it became known about the conclusion of an agreement on the acquisition of Western Areas Ltd. by IGO Ltd. for 1.1B Australian dollars in Q1 2022. Thus, IGO Ltd. also will consolidate the nickel mining business in its portfolio.
The growth leaders in the index are Resolute Mining Ltd. (+7.75%), Virgin Money UK PLC (+6.10%), Northern Star Resource Ltd. (+5.59%).
Among the leaders of the decline are Domain Holdings Australia Ltd. (-7.89%), Afterpay Touch Group Ltd. (-7.45%), Mesoblast Ltd. (-6.44%).
Support and resistance
The price is trading in the global descending channel, forming another wave of decline. Technical indicators reversed and issued a sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming new descending bars.
Support levels: 7235.0, 7100.0.
Resistance levels: 7400.0, 7550.0.
The ASX 200 index is showing a downtrend, trading near 7317.0.
The quotes of the main Australian index began to adjust downward after the Governor of the Reserve Bank of Australia (RBA) Philip Lowe announced a rather pessimistic scenario of the dynamics of the national economy. According to the official, there will be no significant progress in stabilizing inflation in the next year or two, and there is no point in talking about raising the interest rate. The only step that the regulator can take is the reduction and subsequent abandonment of the bond buyback program until the end of 2022, if the economic recovery proceeds within the framework of the RBA forecast.
As for corporate news, the day before it became known about the conclusion of an agreement on the acquisition of Western Areas Ltd. by IGO Ltd. for 1.1B Australian dollars in Q1 2022. Thus, IGO Ltd. also will consolidate the nickel mining business in its portfolio.
The growth leaders in the index are Resolute Mining Ltd. (+7.75%), Virgin Money UK PLC (+6.10%), Northern Star Resource Ltd. (+5.59%).
Among the leaders of the decline are Domain Holdings Australia Ltd. (-7.89%), Afterpay Touch Group Ltd. (-7.45%), Mesoblast Ltd. (-6.44%).
Support and resistance
The price is trading in the global descending channel, forming another wave of decline. Technical indicators reversed and issued a sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming new descending bars.
Support levels: 7235.0, 7100.0.
Resistance levels: 7400.0, 7550.0.
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