Current trend

Australia's leading economic index, the ASX 200, is showing upward momentum and trading near the 8309.0 mark, which is a result of the Reserve Bank of Australia's (RBA) stable monetary policy.

The Australian stock market is trying to find other factors for growth while the regulator is going to keep the interest rate at 4.35% until at least the end of the year. Yesterday, the Australian Bureau of Statistics (ABS) published a report on international travel, which allows us to assess the prospects for the activity of the tourism industry: so, the number of short-term visits in August 2024 amounted to 658.8 thousand, up by 9.2% from the previous year, and the total number of arrivals increased to 1.656 million ( 7.2%). A total of 1.694 million border crossings were recorded ( 11.7%), indicating stable growth in the sector.

An upward correction in the bond market remains a minor restraining factor for the index’s strengthening: the rate on 10-year debt securities rose to 4.299%, the highest since July 26, on 20-year securities — to 4.823% from 4.743%, and on 30-year securities — to 4.853% from 4.800%.

The leaders of growth in the index are Healius Ltd. ( 7.25%), St Barbara Ltd. ( 6.08%), Austal Ltd. ( 3.93%), Regis Resources Ltd. ( 4.37%).

Among the leaders of decline are Idp Education Ltd. (˗6.96%), Kogan.com Ltd. (˗4.66%), Appen Ltd. (˗3.43%).

Support and resistance

On the D1 chart, the price is holding just below the resistance line of the ascending channel with dynamic boundaries of 8350.0–7750.0, confidently approaching it.

Technical indicators have long since reversed, maintaining a stable buy signal: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO histogram is forming correction bars, while holding above the transition level.

Support levels: 8230.0, 7880.0.

Resistance levels: 8350.0, 8610.0.

Trading tips

In case of continued growth and consolidation of the price above the resistance level of 8350.0, buy positions with a target of 8610.0 and a stop-loss of 8250.0 will be relevant. Implementation period: 7 days and more.

In case of a reversal and continued decline of the asset with consolidation below the mark of 8230.0, sell positions with a target of 7880.0 can be opened. Stop loss – 8310.0.